Workplace Report May 2010

Bargaining news

The UK’s working poor

A study by the European Foundation for the Improvement of Living and Working Conditions reports that UK levels of in-work poverty are increasing. The study defines “employed” as working for at least half the year, and “poverty” as receiving an income below 60% of the national median wage.

The UK has average in-work poverty compared with other European countries, at 8%, a figure that applies to both men and women. However, those with less education (16%), single parents with dependent children (21%), those in their job less than a year (26%) and the self-employed (17%) had considerably higher rates of poverty.

Despite the introduction of the National Minimum Wage, between 1998 and 2008 the number of working poor households increased from 2 million to 2.5 million. A quarter of all working poor households have at least one disabled adult and ethnic minority households face twice the risk of poverty as households headed by a white person. The under-21s are also more likely to be poor.

Working poor in Europe, see www.eurofound.europa.eu