The Social Metrics Commission was founded in 2016 to develop a new approach to poverty measurement. The Commission’s ambition is to develop metrics that better reflect the nature and experiences of poverty that different families in the UK face, and which can be used to build a consensus around poverty measurement and action in the UK.

The latest report is published amidst the most significant health, social, and economic crisis of modern times. But the need for robust and agreed poverty measures is arguably greater than ever, so that the Government can develop a clear anti-poverty strategy and others can hold it to account.

Key Findings

Deep Poverty and the Effects of COVID-19

The report shows that, although the poverty rate in the UK has remained largely unchanged over the last 20 years, there has been a significant increase in the proportion of people living in deep poverty – that is, more than 50% below the poverty line. The report also warns that it is those in deep poverty who are being most significantly impacted by the coronavirus.

Before the coronavirus pandemic struck, there were 4.5 million people (7% of the UK population) living in deep poverty, up from 2.8 million (5% of the population) two decades ago. This is in contrast to the overall rate of poverty, which has changed relatively little over the same period.

YouGov survey data included in the report reveals that two in three (65%) of those employed and in deep poverty prior to the crisis have seen reduced hours or earnings, been furloughed, and/or lost their job. This compares to one in three (35%) of those employed and living in families more than 20% above the poverty line prior to the crisis.

The report also shows that families in poverty where the adults work full time are less likely to experience deep poverty. Nearly one in five (19%) of those in poverty in full-time work families are in deep poverty, compared to over four in ten (43%) of those in poverty in part-time work families and half (50%) of those in poverty in workless families.

Poverty in the UK prior to the COVID-19 crisis:

The report reveals that, before the coronavirus struck:

• The overall rate of poverty in the UK was 22%. There were 14.4 million people living in poverty. This included 4.5 million children; 8.5 million working-age adults; and 1.3 million pension-age adults.
• Half (50%) of all people in poverty lived in a family that included a disabled person. There were 4 million people in poverty who were themselves disabled and another 3.2 million lived in a family that included someone else who is disabled.
• Poverty rates were highest amongst families with children. The poverty rate for people living in couple families without children was 11% (1.4 million people), compared to 26% (5.9 million people) for people in couple families with children and 48% (2.4 million people) for those in lone-parent families.
• Poverty rates were higher for Black and Minority Ethnic families. Nearly half (46%, 900,000 people) of all people living in families where the household head is Black/African/Caribbean/Black British were in poverty, compared to just under one in five (19%, 10.7 million people) of those living in families where the head of household is White.
• Poverty rates varied slightly across the UK’s four nations. The highest poverty rate was 23% in Wales, compared to 22% in England, 21% in Northern Ireland, and 19% in Scotland.
• Poverty rates varied significantly between English regions. Poverty rates were highest in London (29%) and the North East (26%), and lowest in the South West, South East, and East of England (all 18%).

However, the report also shows that there have been some positive changes in recent years, including a closing of the resilience gap between those in poverty and those not in poverty in some areas:

• After rising for the last three years, the most recent data shows that the poverty rate for children and pension-age adults has plateaued at 33% and 11% respectively.
• The proportion of people in poverty who live in lone-parent or single-pensioner families has fallen from 24% and 7% respectively in 2000/01 to 17% and 5%.
• The poverty rate for families that include a disabled child has fallen from 46% in 2008/09 to 34%.
• The proportion of people in poverty who are also in persistent poverty has fallen for all age groups since 2014.
• Fewer people in poverty live in families where someone feels unsafe walking alone at night (29%, down from 35% in 2011/12).
• Fewer people in poverty live in families where someone worries about being affected by crime (50%, down from 54% in 2011/12).

However, the SMC’s Lived Experience Indicators show that those in poverty still experience worse outcomes than those not in poverty:

• One in five (20%) people in poverty live in families where no one has any formal qualifications, compared to less than one in ten (8%) of those in families not in poverty.
• Nearly three in ten (27%) people in poverty live in a family that is behind with paying bills, compared to less than one in ten (7%) of those not in poverty.
• The majority of people in poverty (70%) live in families where no-ones saves, nearly double the proportion of those not in poverty (38%).

Read the full report at the Social Metrics Commission website: socialmetricscommission.org.uk