Understanding each measure of Child Poverty
In 2016, the Welfare Reform and Work Act abolished the Child Poverty Act, including the targets to reduce poverty and the measure of poverty based on family income. The government is now required only to report to parliament on the number of children living in workless households, and educational outcomes at GCSE level. However, after a campaign by the Child Poverty Action Group, the government agreed to commit to regularly publishing data on the number of children in poverty. The Poverty Fact Book includes 4 measures for Child Poverty:
- Relative Child Poverty UK DWP official measure for the UK, before and after housing costs
- Absolute Child Poverty UK DWP official measure for the UK, before and after housing costs
- Leeds Child Poverty HMRC & DWP official Local Measure, before housing costs
- Leeds Child Poverty End Child Poverty Coalition’s Localised Estimate, after housing costs
The headline figure for Child Poverty is the DWP’s Child Poverty, after housing costs are deducted from income. The DWP and HMRC have now combined their figures to produce one official local estimate for child poverty. The End Child Poverty Coalition estimate is included because it is useful local estimate that can provide figures after housing costs have been deducted.
Child Poverty in the UK – Relative Child Poverty
The proportion of children living in households where income is less than 60% of median household income
Table 2.1
| All dependent children under the age of 20 | 2019/20 | 2018/19 | 2009/10 | 2010/11 | 1 year change | 10 year change |
| No of UK Children in Relative Poverty in BHC(m) | 3.2m | 2.8m | 2.6m | 2.3m | +0.4m | +0.6m |
| UK Children in Relative Poverty in the UK BHC % | 23% | 20% | 20% | 18% | ||
| No of UK Children in Relative Poverty AHC(m) | 4.3m | 4.1m | 3.9m | 3.6m | +0.1m | +0.3m |
| UK Children in Relative Poverty in the UK AHC % | 31% | 29% | 20% | 27% | ||
| Source: DWP, Households below average income (HBAI), March 2021 | ||||||
Latest figures show 3.2 million children experienced relative poverty before housing costs were deducted (BHC) during 2019/20 (23% of children in the UK), an increase of 400,000 children on the previous year, and 600,000 more children in poverty compared to 10 years ago.
Looking at relative poverty figures after housing costs (AHC) are deducted from income, there were 4.3 million children in relative poverty 2019/20 (31% of children in the UK). This is has increased by 100,000 more children in 2018/19 and 300,000 more children in poverty compared to 10 years ago.
Child Poverty in the UK – Absolute Child Poverty
The proportion of children living in households where income is less than 60 per cent of median household income in 2010/11 uprated by CPI inflation.
Table 2.2
| All dependent children under the age of 20 | 2019/20 | 2018/19 | 2009/10 | 2010/11 | 1 year change | 10 year change |
| No of UK Children in Absolute Poverty in BHC(m) | 2.4m | 2.4m | 2.5m | 2.3m | 0.0m | -0.1m |
| UK Children in Absolute Poverty in the UK BHC % | 17% | 17% | 19% | 18% | ||
| No of UK Children in Absolute Poverty AHC(m) | 3.5m | 3.6m | 3.7m | 3.6m | -0.2m | -0.3m |
| UK Children in Absolute Poverty in the UK AHC % | 25% | 26% | 28% | 27% | ||
| Source: DWP, Households below average income (HBAI), March 2021 | ||||||
Latest figures show 2.4 million children experienced absolute poverty during 2019/20 before housing costs (BHC) were deducted from income (17% of children in the UK). This figure has remained stable since 2018/19, and fallen by 100,000 children compared to 10 years ago. Looking at absolute poverty figures after housing costs (AHC) are deducted from income, there were 3.5 million children in absolute poverty AHC during 2019/20 (25% of children in the UK), which has fallen by 200,000 since 2018/19 and fallen by 300,000 in the last 10 years.
Children in working and workless households in relative poverty (UK estimates)
Table 2.3:
| Economic status of household | UK Total number of children | Children in poverty BHC | Children in poverty AHC | ||
| No | % | No | % | ||
| At least one adult in work | 12.3m | 2.3m | 19% | 3.2m | 26% |
| Workless households | 1.6m | 856,500 | 53% | 1.06m | 66% |
| Total number of children | 14.0m | 3.2m | n/a | 4.3m | n/a |
| Source: DWP, Households below average income (HBAI), March 2021 | |||||
A higher percentage of children in workless families are in poverty, compared to children in families where at least one adult is in work. In 2019/20, 66% of all children in workless families were in relative poverty AHC (affecting an estimated 1.06m children). In contrast, 26% of all children with at least one adult in work were in relative poverty (affecting an estimated 3.2m children).
When looking solely at the proportion of children in poverty, it can be seen that 2.3m out of 3.2m children in poverty are from a working family, this equates to 72% of children in poverty being from a working family before housing costs are deducted). After housing costs are deducted, 74% (3.2m out of 4.3m) of children in poverty are from working families.
Child Poverty in Leeds : HMRC and DWP combined Local Measure – Children in Low-Income Families
The Children in Low-Income Families data contains annual official statistics on the number of children under 16 living in Relative and Absolute low income families BHC, by local area across the United Kingdom. These statistics replace earlier Official Statistics previously published by DWP (Children in out-of-work benefit households) and HMRC (Personal tax credits: Children in low-income families local measure). The new statistics provide a more coherent picture of children under 16 living in low income families by local area BHC.
Table 2.4:
| 2019/20 | 2018/19 | 2017/18 | 1 year change | |||||
| Number | % | Number | % | Number | % | Number | % | |
| UK | 2.4m | 19% | 2.3m | 18% | 2.2m | 18% | +176,000 | +1% |
| Leeds | 36,496 | 24% | 34,862 | 23% | 32,394 | 22% | +1634 | +1% |
| Source: Children in low income families: local area statistics (HMRC & DWP) March 2021 | ||||||||
Latest figures show 2.4 million children under 16 were living in relative low income families BHC in 2019/20 UK, equal to 19%. This is an increase of 176,000 more children (1%) since 2018/19. In Leeds, 24% of children, (36, 496) were living in relative low income families BHC in 2019/20. This is an increase of 1% (1634) children since 2018/19.
Table 2.5:
| 2019/20 | 2018/19 | 2017/18 | Annual Change | |||||
| number | % | number | % | number | % | number | % | |
| UK | 2m | 16% | 1.9m | 15% | 1.8m | 15% | +107,000 | +1% |
| Leeds | 30,197 | 20% | 30,215 | 20% | 28,016 | 19% | -18 | 0 |
| Children in low income families: local area statistics 2021 (HMRC & DWP) | ||||||||
Latest figures show 2.0 million children under 16 were living in absolute low income families BHC in 2019/20 UK, equal to 16%. This is an increase of 107,000 more children (1%) since 2018/19. In Leeds, 20% of children, (30, 197) were living in absolute low income families BHC in 2019/20. This has remained statistically static since 2018/19.
Child Poverty in Leeds – End Child Poverty Coalition AHC Estimates
Table 2.6
| Child Poverty Estimates (Relative AHC) | 2017/18 | 2018/19 | 1 year change |
| Number of Children in Relative Poverty (Leeds) | 47,132 | 50,727 | +3595 |
| Percentage of Children in Relative Poverty (Leeds) | 31% | 33% | +2% |
| Number of Children in Relative Poverty (UK) | 3.7m | 3.8m | +100,000 |
| Percentage of Children in Relative Poverty (UK) | 30% | 30% | 0 |
| http://www.endchildpoverty.org.uk/child-poverty-in-your-area-201415-201819/ | |||
These tables are based on the DWP/HMRC statistics “Children in low income families: local area statistics” (March 2020) and uses the DWP/HMRC local indicators combined with information about housing costs at the local level to estimate poverty rates after housing costs (AHC).
In Leeds the rate of child poverty for 2018/19 is estimated at 33% after housing costs are deducted, affecting 50,727 children under 16. In the UK, the rate of child poverty is estimated at 30% after housing costs are deducted, affecting 3.8 million children.
This estimate is available after housing costs are deducted and is designed to offer localised estimates on Child Poverty, comparable to the national DWP/HMRC measure above. The official Child Poverty rate for local areas is published by DWP is only available before housing costs are deducted (See Table 2.4 & 2.5 above).
Free School Meals
The data in this table is a total of all school types – i.e. for state funded primary, secondary, special schools, Pupil Referral Units and Alternative Provision Academies and Free Schools. The data excludes all infant children who receive universal free school meals regardless of income.
Table 2.7
| England | Leeds | England Change | Leeds Change | |||
| 2019 | 2018 | 2019 | 2018 | 2018-19 | 2018-19 | |
| Total Number of pupils | 8,264,937 | 8,152,323 | 125,183 | 122,742 | +112,614 | +2,441 |
| Number of pupils known to be eligible for and claiming free school meals | 1,275,473 | 1,106,495 | 22,755 | 15,395 | +168,978 | +7,360 |
| Percentage known to be eligible for and claiming free school meals | 15.4% | 13.6% | 18.2% | 12.5% | +1.8% | +5.6% |
| Source: DfE Schools, pupils and their characteristics, Jun 2019 | ||||||
In January 2019, 22,755 (18.2%) of pupils in Leeds were eligible and claiming a free school meal. Nationally 15.4% were eligible and claiming.
According to Leeds City Council’s local data the uptake of free school meals in January 2019 was 79.4%. Please note that this figure represents all of Leeds’ local authority maintained schools but not all Acadameies in Leeds.
Entitlement to free school meals is determined by the receipt of income-related benefits. Since 1 April 2018, transistional protections have been in place which will continue to be in place during the roll out of Universal Credit. This has meant that pupils eligible for free school meals on or after 1 April 2018 retain their free school meals eligibility even if their circumstances change. The DfE state that this has been the main driver in the increase in the proportion of pupils eligible for free school meals as pupils continue to become eligible but fewer pupils stop being eligible.
Further information
Child Poverty
Relative and Absolute Child Poverty UK DWP official measure for the UK
The DWP’s Household Below Average Income (HBAI) report contains the official headline measure for all poverty figures for the UK, in particular the number of children in low-income families at a national level.
The HBAI is based on data from the Family Resources Survey in which the sample sizes are insufficient for useful analysis at the local level. In HBAI, median household income is calculated using the entire income distribution. The HBAI low-income threshold is then calculated by taking 60 per cent of this median.
The measure represents dependent children under the age of 20. A dependent child is defined as an individual aged under 16 or an individual aged 16 to 19 years who is:
- not married nor in a Civil Partnership nor living with a partner; and
- living with parents; and
- in full-time non-advanced education or in unwaged government training
HMRC and DWP Combined Measure – Children in low income families measure
In 2020 the DWP & HMRC first released joint statistics ‘Children in low income families’. This local measure uses mid year estimates for population figures (ONS) and provides a picture of children in low income families for both Relative and Absolute measures, but only Before Housing Costs (BHC).
A family must have claimed one or more of Universal Credit, Tax Credits or Housing Benefit at any point in the year to be classed as low income in these statistics.
The count of children refers to the age of the child at 31 March of each year.
This measure only publishes the rate and number of children aged under 16 years. The estimate number of children aged 0-19 years is published online (Stat xplore), however rates for all children (aged 0 to 19years) have not been produced as an undetermined proportion of 16 to 19 year olds would not be treated as children for the purposes of these statistics.
End Child Poverty Coalition Local Estimates
New research by the Centre for Research in Social Policy at Loughborough University, for the End Child Poverty coalition, estimates child poverty after housing costs, by ward, local authority and parliamentary constituency in the UK, for each of five years from 2014/15 to 2018/19.
These tables are based on the DWP/HMRC statistics “Children in low income families: local area statistics” (March 2020). The tables provided use the DWP/HMRC local indicators combined with information about housing costs at the local level to estimate poverty rates after housing costs (AHC), showing how many children age 0-15 years are in households with incomes net of housing costs that are below 60% of the median.
Free School Meals
Free School Meals – in England in January 2019, children in state-funded schools were entitled to receive free school meals if a parent or carer were in receipt of any of the following benefits:
- Income Support
- Income-based Jobseekers Allowance
- Income-related Employment and Support Allowance
- Support under Part VI of the Immigration and Asylum Act 1999
- the guaranteed element of State Pension Credit
- Child Tax Credit (provided they were not also entitled to Working Tax Credit and had an annual gross income of no more than £16,190, as assessed by Her Majesty’s Revenue and Customs)
- Working Tax Credit run-on – paid for 4 weeks after you stop qualifying for Working Tax Credit
- Universal Credit – if you apply on or after 1 April 2018 your household income must be less than £7,400 a year (after tax and not including any benefits you get).