Section 5: In-work Poverty

Important Information for 2023 Statistics

Please be advised: due to the impact of the COVID-19 pandemic, the Households Below Average Income (HBAI) data release for 2021/22  remains significantly reduced, and less reliable than seen in previous years (full explanation available here).

Due to this, it will not be possible to make year on year comparisons, or to draw conclusions about recent poverty trends. It is therefore recommended that poverty data for 2021/22 is instead viewed as a point in time estimate of poverty levels only.

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 5.1

Economic status of household BHC AHC
No % No %
All adults in work 1.3m 6% 2m 9%
At least one adult in work, but not all 2.3m 21% 3.2m 29%
Workless households 2.4m 47% 2.9m 57%
Source: DWP, Households below average income (HBAI) March 2023

Before Housing Cost (BHC), 5.5% 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 1.3m adults in the UK.  After Housing Cost (AHC) this figure moves up to 2m adults being affected.

BHC, 20.7% 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.

BHC, 46.7% 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 2.4m adults in the UK.  AHC this figure moves up to 2.9m adults (56.5%) being affected.

In-Work and Workless Households in Relative Poverty Leeds Estimate

Table 5.2

At least one adult in work BHC AHC
No % No %
UK 3.6m 9% 5.2m 13%
Leeds 47,474 9% 68,457 13%
Source: DWP, Households below average income (HBAI) 2023 and ONS APS Mid-year Population Estimates 2021

Nationally it is estimated that 3.6 million adults that are in poverty are from households where at least 1 person is in work (BHC). This affected almost 9% of all working age adults in the UK in 2021/22. If 9% is applied to the 2021 working age population of Leeds, 47,474 Leeds adults could be affected by in-work poverty.

5.2 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 2021/22. If 13% is applied to the working age population of Leeds, 68,457 Leeds adults could be affected by in-work poverty. (The working age population of Leeds in 2021 was 528,379).