Understanding In-work Poverty
In-work Poverty data can provide an indication that a significant proportion of people in work are needing to claim benefits or tax credits because they are not earning enough to pay their bills. In-work poverty can occur due to problems with the nature of work at the bottom end of the labour market. Jobs that are low paid, low skilled and offer zero-hour contracts contribute to in-work poverty.
In-Work and Workless Households in Relative Poverty UK Snapshot
Table 3.1
| Economic status of household | BHC | AHC | ||
| No | % | No | % | |
| All adults in work | 1,487,529 | 6% | 2,231,405 | 9% |
| At least one adult in work, but not all | 2,265,433 | 21% | 3,239,158 | 29% |
| Workless households | 2,244,563 | 46% | 2,632,988 | 54% |
| Source: DWP, Households below average income (HBAI), March 2024 | ||||
Before Housing Cost (BHC), 6% of working age adults in the UK live in households where everyone is in work yet they are still in relative poverty. This affects an estimated 1.5m adults in the UK. After Housing Cost (AHC) this figure moves up to 2.2m adults being affected (9%).
BHC, 21% of working age adults in the UK live in households where at least one adult is in work and live in relative poverty. This affects an estimated 2.3m adults in the UK. AHC this figure moves up to 3.2m adults being affected (29%).
BHC, 46% of working age adults in the UK live in households where no adults are in work and live in relative poverty. This affects an estimated 2.2m adults in the UK. AHC this figure moves up to 2.6m adults (54%) being affected.
In-Work and Workless Households in Relative Poverty Leeds Estimate
Table 3.2
| At least one adult in work | BHC | AHC | ||
| No | % | No | % | |
| UK | 3,752,962 | 9% | 5,470,563 | 13% |
| Leeds | 49,857 | 9% | 72,675 | 13% |
| Source: DWP, Households below average income (HBAI), March 2024 and ONS Mid-year Population Estimates, June 2023 | ||||
Nationally it is estimated that 3.8 million adults that are in poverty are from households where at least 1 person is in work (BHC). This affected 9% of all working age adults in the UK in 2022/23. If 9% is applied to the 2022/23 working age population of Leeds, 49,857 Leeds adults could be affected by in-work poverty.
5.5 million adults that are in poverty are from households where at least 1 person is in work (AHC). This affected 13% of all working age adults in the UK in 2022/23. If 13% is applied to the working age population of Leeds, 72,675 Leeds adults could be affected by in-work poverty. (The working age population of Leeds in 2022/23 was 539,095).