The Social Metrics Commission (SMC) used Understanding Society data to create the report, Measuring Poverty 2020.
Key findings
- 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 (decreasing from 23% in 2000/01 to 22% in the latest figures).
- 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.
- More than a third (36%) of those in deep poverty have had their hours or pay reduced as a result of the crisis, compared to less than a quarter (22%) of those living more than 20% above the poverty line.
Further findings
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.
If the rate of deep poverty was the same today as it was in 2000/01, 1.3 million fewer people would now be in deep poverty.
Commenting on the report, Philippa Stroud, Chair of the SMC and CEO of the Legatum Institute, said:
Covid 19Income and expenditureIt is extremely concerning that the proportion of people experiencing deep poverty has risen since the millennium, through Governments of all colour, and is likely to continue to increase as the country struggles with the ongoing effects of the coronavirus pandemic.
Our analysis indicates a picture where, over the last 20 years, rising employment rates for those in poverty were helping families move out of deep poverty, so they were more likely to be able to escape poverty in the future. A reversal of this employment success story will likely lead to many of those already experiencing poverty moving into deeper poverty. Supporting employment, especially for those on the lowest incomes, must remain a key priority of Government.
