Child Poverty

The figures presented here are from the End Child Poverty Coalition are based on tax credit data, used to estimate the percentage of children on low incomes in local authorities, parliamentary constituencies and wards across the UK. They also use national trends in worklessness to estimate recent changes in the number of children who are in poverty because their parents have lost their jobs, to update the local tax credit data which is more than two years old.

This is not a direct measure of exactly how many children are in poverty on the official definition, but is based on the closest to an equivalent measure we have of local levels of child poverty. The data have been adjusted to produce figures compatible with the measures derived from the national survey of income, showing how many children live in households with below 60 per cent of median income.

Specifically, the adjustments ensure that the total reported level of child poverty, before and after housing costs, is similar when adding up all the local figures as the official national totals. Thus, the local data gives an idea of the relative poverty levels in different areas, but are adjusted to estimate what these actual levels would be if they could be measured on the same basis as the national household income survey.

The local data starts by classifying children in poverty if they live in families in receipt of out of work benefits or in receipt of in-work tax credits where their reported family income is less than 60 per cent of median income. This indicator, compiled officially as a local estimate of child poverty, has been reported for August 2011 by HMRC.

However, on its own it is provides an inaccurate picture of actual child poverty, considerably overstating the numbers in out-of-work poverty and understating the numbers in working poverty. While these factors may balance out overall, they can seriously misrepresent the overall trend where working and non-working poverty change in different ways, as well as misrepresenting local differences where working poverty is relatively more important in some areas than others. Therefore, the figures include an upward adjustment in the in-work figure and a downward adjustment in the out-of-work figure. The adjustments are made separately to for AHC and BHC estimates, in each case according to how the total of the local estimates compare to the actual national measure. Figures are then updated, taking into account Labour Force Survey data on the number of children in non-working households for the final quarter of 2013.

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Last Updated November 7, 2017, 13:57 (UTC)
Created February 10, 2015, 14:10 (UTC)