UNIVERSITY OF YORK
Social Policy Research Unit
May 2018
UK
child poverty gaps still increasing
Poverty gaps and
poverty rates
There has
always been a debate in the world of poverty measurement about whether we
should be more concerned about poverty rates (the proportion below a poverty
threshold) or poverty gaps (how far people in poverty are below the poverty
threshold). Is it better for a country to have many children a little way below
the poverty threshold or few children below the poverty threshold, but a long
way below it?
The UK has
tended in the past to have comparatively high poverty rates but comparatively
low poverty gaps. This has been thanks to a fairly comprehensive but quite low minimum
income scheme. But since the recession
our minimum income scheme has been undermined[3]
by benefit caps, the two child limit, the bedroom tax, local rent limits, real-terms
cuts to benefit levels, the failure to uprate child tax credits and child benefits,
the localisation of council tax benefit and sanctions.
The most recent Households Below
Average Income (HBAI) statistics for 2016-17[4]
produced by the DWP show an increase in child poverty rates (after housing
costs). However the HBAI series have never included poverty gap data: for
households below the poverty line, the average of how far their incomes are
from the poverty threshold.
Nevertheless poverty gaps are
important, as they tell us about likely levels of hardship for those living
below the poverty line. Poverty rates may be falling when poverty gaps are
rising and vice versa. We have analysed trends in the poverty gaps for families
with children from 2007/8 to 2016/17 and the results are presented in Tables 1
and 2 and Figure 1.
Poverty gap increasing in the UK
The best measure to focus on is the median
poverty gap for all families with children. There has been an increase in the
poverty gap, both before and after housing costs. In 2007/8 the median poverty
gap before housing costs was £41.60 per week, but by 2016/17 it had increased
to £57.40 per week. After housing costs the increase was from £50.40 per week
in 2007/8 to £63.00 per week in 2016/17.
In other words, not only is the
number of children in poverty increasing but families with children are now
living, on average, further below the poverty line than they did ten years ago.
The sharpest increases in the poverty line have occurred since around 2012,
when the first wave of cuts to family benefits (such as the benefit cap and
reductions in support with housing costs) started to take effect.
Table 1: Poverty gaps average £ per week before housing costs
|
Poverty gap (£ per week)
|
||||||||||
|
|
2007/8
|
2008/9
|
2009/10
|
2010/11
|
2011/12
|
2012/13
|
2013/14
|
2014/15
|
2015/16
|
2016/17
|
|
Lone parent
|
|
|
|
|
|
|
|
|
|
|
|
Mean (SD)
|
47.00 (42.56)
|
48.17 (48.67)
|
48.32 (48.48)
|
47.56 (50.60)
|
55.05 (48.25)
|
63.32 (59.55)
|
53.87 (54.56)
|
61.96 (61.28)
|
66.25 (64.09)
|
67.57 (63.01)
|
|
95% CI for the mean
|
46.92-47.08
|
48.07-48.26
|
48.22-48.43
|
47.44-47.68
|
54.93-55.16
|
63.18-63.46
|
53.73-54.00
|
61.82-62.10
|
66.11-66.38
|
67.44-67.71
|
|
Median
|
35.60
|
32.60
|
32.00
|
31.80
|
41.20
|
45.00
|
33.80
|
37.80
|
45.60
|
50.40
|
|
Couple with children
|
|
|
|
|
|
|
|
|
|
|
|
Mean (SD)
|
66.34 (59.68)
|
70.30 (63.19)
|
70.12 (64.65)
|
68.22 (62.88)
|
63.59 (60.44)
|
74.68 (71.49)
|
68.89 (63.07)
|
75.39 (68.55)
|
72.47 (69.57)
|
84.03 (77.47)
|
|
95% CI for the mean
|
66.25-66.42
|
70.21-70.39
|
70.03-70.22
|
68.12-68.31
|
63.50-63.69
|
74.57-74.79
|
68.79-68.99
|
75.29-75.49
|
72.37-72.57
|
83.92-84.14
|
|
Median
|
47.60
|
48.60
|
49.00
|
48.80
|
45.20
|
51.00
|
50.80
|
54.80
|
51.60
|
60.40
|
|
All families with children
|
|
|
|
|
|
|
|
|
|
|
|
Mean (SD)
|
59.04 (54.67)
|
62.18 (59.25)
|
63.21 (60.85)
|
62.08 (60.24)
|
61.07 (57.24)
|
71.33 (68.38)
|
64.92 (61.29)
|
71.25 (66.68)
|
70.45 (67.90)
|
78.87 (73.64)
|
|
95% CI for the mean
|
58.98-59.11
|
62.11-62.25
|
63.14-63.29
|
62.00-62.16
|
60.99-61.14
|
71.24-71.42
|
64.84-65.00
|
71.17-71.33
|
70.36-70.53
|
78.78-78.96
|
|
Median
|
41.60
|
42.60
|
44.00
|
42.80
|
44.20
|
49.00
|
46.80
|
49.80
|
50.60
|
57.40
|
|
Children
|
|
|
|
|
|
|
|
|
|
|
|
Total number of children (thousands)
|
12,976
|
12,965
|
13,150
|
13,207
|
13,267
|
13,350
|
13,329
|
13,480
|
13,541
|
13,660
|
|
% in poverty
|
22.5
|
21.9
|
19.8
|
17.6
|
17.6
|
17.3
|
17.0
|
18.8
|
19.6
|
19.5
|
Source: Own analysis of HBAI
Table 2: Poverty gaps average £ per week after housing costs
|
Poverty gap (£ per week)
|
||||||||||
|
|
2007/8
|
2008/9
|
2009/10
|
2010/11
|
2011/12
|
2012/13
|
2013/14
|
2014/15
|
2015/16
|
2016/17
|
|
Lone parent
|
|
|
|
|
|
|
|
|
|
|
|
Mean (SD)
|
57.66 (49.57)
|
59.83 (61.61)
|
59.95 (61.36)
|
59.31 (57.62)
|
60.62 (57.41)
|
66.90 (67.50)
|
63.02 (65.57)
|
75.69 (69.65)
|
78.04 (72.42)
|
77.84 (71.29)
|
|
95% CI for the mean
|
57.58-57.73
|
59.74-59.93
|
59.85-60.05
|
59.21-59.41
|
60.52-60.72
|
66.79-67.02
|
62.90-63.13
|
75.57-75.80
|
77.93-78.16
|
77.72-77.95
|
|
Median
|
46.40
|
43.00
|
44.20
|
41.80
|
47.00
|
46.40
|
46.60
|
54.40
|
57.80
|
59.00
|
|
Couple with children
|
|
|
|
|
|
|
|
|
|
|
|
Mean (SD)
|
78.01 (84.23)
|
81.62 (80.61)
|
78.67 (80.98)
|
78.10 (74.65)
|
76.46 (78.29)
|
80.47 (83.21)
|
81.55 (75.57)
|
85.14 (81.50)
|
90.76 (107.84)
|
93.98 (96.96)
|
|
95% CI for the mean
|
77.91-78.12
|
81.52-81.72
|
78.57-78.77
|
78.00-78.19
|
76.36-76.57
|
80.37-80.58
|
81.46-81.65
|
85.04-85.24
|
90.63-90.90
|
93.87-94.10
|
|
Median
|
52.40
|
57.00
|
57.20
|
57.80
|
56.00
|
55.40
|
62.60
|
61.40
|
63.80
|
67.00
|
|
All families with children
|
|
|
|
|
|
|
|
|
|
|
|
Mean (SD)
|
70.02 (73.30)
|
73.29 (74.68)
|
71.86 (74.99)
|
71.44 (69.68)
|
70.78 (71.90)
|
75.59 (78.20)
|
75.16 (72.82)
|
81.80 (77.66)
|
85.95 (96.19)
|
88.14 (88.87)
|
|
95% CI for the mean
|
69.95-70.09
|
73.22-73.37
|
71.79-71.94
|
71.36-71.51
|
70.70-70.85
|
75.51-75.68
|
75.09-75.24
|
81.72-81.88
|
85.86-86.05
|
88.05-88.22
|
|
Median
|
50.40
|
52.00
|
52.20
|
50.80
|
52.00
|
51.40
|
55.60
|
57.40
|
61.80
|
63.00
|
|
Children
|
|
|
|
|
|
|
|
|
|
|
|
Total number of children (thousands)
|
12,976
|
12,965
|
13,150
|
13,207
|
13,267
|
13,350
|
13,329
|
13,480
|
13,541
|
13,660
|
|
% in poverty
|
31.4
|
30.3
|
29.5
|
27.3
|
27.1
|
27.2
|
27.8
|
29.0
|
29.6
|
30.3
|
Source: Own analysis of HBAI
Figure 1. Changes in the poverty gap since 2007/8 for families
with children before (BHC) and after housing costs (AHC)
Source: Own analysis of HBAI