Housing Crisis Fuels Record Number Of Working Families Living In Poverty

Britain’s housing crisis has driven the number of people living in poverty despite being in a working family to a record 7.4 million, according to new research for the Joseph Rowntree Foundation. The annual Monitoring Poverty & Social Exclusion report shows that 3.8 million workers are living in poverty, more than one in 10 of all people in employment.  In total, 13.5 million people – more than one in five of the UK’s population – are living in poverty. Overall levels of poverty have remained flat compared to 2010, thanks to the economic recovery – but in-work poverty has risen by 1.1 million over the same period. The rise has been driven by the housing crisis and in particular high costs and insecurity in the private rented sector. Read the report online at the JRF website.

'In-Work Poverty' Soars By 59% As More Employees Claim Housing Benefit

The number of people in work and claiming housing benefit has rocketed by 59 per cent since the Coalition came to power and will cost taxpayers an extra £5 billion by next year’s general election. The figures, compiled by the House of Commons Library, highlight the growth of “in-work poverty” in recent years while wages fell in real terms and rents continued to rise. They also undermine claims by some Conservatives that benefit claimants are “skivers” because many people qualify for state help even though they are in jobs.  The number of housing benefit claimants in work rose from 650,561 in May 2010 to 1.03 million by the end of last year. The Commons Library estimates the cost of the extra claims at £4.8 billion by May 2015. Read more on the Independent website.

'Government Must Do More to End In-Work Poverty'

A think tank has called on the government to do more to end in-work poverty. The Smith Institute has pointed to Department for Work and Pensions figures showing the vast majority of new housing benefit claims have come from employed claimants. Between May 2010 and February 2012 the number of housing benefit claims increased by 252,970, in which around nine in ten (227,640) were from people in low paid work. The think tank said the figures show that falling incomes and rising living costs are pushing people below the poverty line. A spokesperson for the think tank said: ‘In some places, like London, real rents are rising, at the same time real wages are falling.’ Read more on Inside Housing.