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Poor children: more are in working families, study says Poor children: more are in working families, study says
(about 3 hours later)
The proportion of poor children whose parents work has risen, a report on living standards has concluded.The proportion of poor children whose parents work has risen, a report on living standards has concluded.
The number of children in absolute poverty stayed the same between 2009 and 2014, the Institute of Fiscal Studies (IFS) report concluded.The number of children in absolute poverty stayed the same between 2009 and 2014, the Institute of Fiscal Studies (IFS) report concluded.
Rising employment meant more children lived with working parents.Rising employment meant more children lived with working parents.
But the real income of working families fell - so the proportion of poor children in working families rose from 54% to 63%, says the IFS.But the real income of working families fell - so the proportion of poor children in working families rose from 54% to 63%, says the IFS.
A government spokesman said the number of people in in-work poverty was now 200,000 lower than its 2008/9 peak.A government spokesman said the number of people in in-work poverty was now 200,000 lower than its 2008/9 peak.
'Tackle low pay''Tackle low pay'
Report co-author Robert Joyce, senior research economist at the IFS, said: "The government has recently emphasised worklessness as a cause of poverty.Report co-author Robert Joyce, senior research economist at the IFS, said: "The government has recently emphasised worklessness as a cause of poverty.
"This makes sense, but tackling low living standards will be difficult without improvements for working families too.""This makes sense, but tackling low living standards will be difficult without improvements for working families too."
BBC economics correspondent Andy Verity said: "Between 2009 and 2014 benefits broadly rose with inflation but wages didn't.BBC economics correspondent Andy Verity said: "Between 2009 and 2014 benefits broadly rose with inflation but wages didn't.
"As the recovery slowly took hold, more families found work. But because real wages were falling that didn't always mean an exit from poverty.""As the recovery slowly took hold, more families found work. But because real wages were falling that didn't always mean an exit from poverty."
Acting shadow work and pensions secretary Stephen Timms said: "This IFS report shows David Cameron and George Osborne have overseen a huge increase in the number of children in poverty who live in working families and they're set to make matters worse with huge tax credit cuts for working people.Acting shadow work and pensions secretary Stephen Timms said: "This IFS report shows David Cameron and George Osborne have overseen a huge increase in the number of children in poverty who live in working families and they're set to make matters worse with huge tax credit cuts for working people.
"We urge ministers to act now to cut the number of children of working families living in poverty. That means tackling low pay rather than attacking the low-paid with tax credit cuts.""We urge ministers to act now to cut the number of children of working families living in poverty. That means tackling low pay rather than attacking the low-paid with tax credit cuts."
Child Poverty Action Group chief executive Alison Garnham said the number of poor children in working families would continue to increase if government cuts to in-work tax credits go ahead.Child Poverty Action Group chief executive Alison Garnham said the number of poor children in working families would continue to increase if government cuts to in-work tax credits go ahead.
She said: "Removing those children from the scope of poverty measures cannot redefine the reality of their poverty out of existence.She said: "Removing those children from the scope of poverty measures cannot redefine the reality of their poverty out of existence.
"Parents need politicians to strengthen, not weaken, work incentives.""Parents need politicians to strengthen, not weaken, work incentives."
'Route out of poverty''Route out of poverty'
Julia Unwin, chief executive of the Joseph Rowntree Foundation, said: "A strong economy and rising employment have masked the growing problem of in-work poverty, as years of below-inflation wage rises have taken their toll on people's incomes. The upcoming minimum wage rise will help, but many low-income working families will still find themselves worse off due to tax credit changes."Julia Unwin, chief executive of the Joseph Rowntree Foundation, said: "A strong economy and rising employment have masked the growing problem of in-work poverty, as years of below-inflation wage rises have taken their toll on people's incomes. The upcoming minimum wage rise will help, but many low-income working families will still find themselves worse off due to tax credit changes."
"Boosting productivity and creating more jobs which offer progression at work is vital to make work a reliable route out of poverty.""Boosting productivity and creating more jobs which offer progression at work is vital to make work a reliable route out of poverty."
Barnardo's chief executive Javed Khan said: "This report puts paid to the myth that work alone provides a route off the breadline, discrediting the government's Budget plans to cut families' lifeline tax credits."Barnardo's chief executive Javed Khan said: "This report puts paid to the myth that work alone provides a route off the breadline, discrediting the government's Budget plans to cut families' lifeline tax credits."
A government spokesman said: "This report recognises that rising employment has led to increases in the proportion of children living with working parents.A government spokesman said: "This report recognises that rising employment has led to increases in the proportion of children living with working parents.
"And we know that the proportion of people living on low incomes is at the lowest level since the mid-1980s."And we know that the proportion of people living on low incomes is at the lowest level since the mid-1980s.
"Work remains the best route out of poverty and we want to ensure that when people go out to work they are paid a decent wage and get to keep more of what they earn.""Work remains the best route out of poverty and we want to ensure that when people go out to work they are paid a decent wage and get to keep more of what they earn."
New legislation will look at levels of parental unemployment as well as educational achievement. The new system will also include factors such as educational achievement and living in workless households as well as income. New legislation will look at levels of parental unemployment as well as educational achievement. The new system will also include factors such as educational achievement and living in workless households.
Are you affected by the issues raised in this story? Please email haveyoursay@bbc.co.uk with your experiences.Are you affected by the issues raised in this story? Please email haveyoursay@bbc.co.uk with your experiences.
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