The young and workers mostly likely to be in poverty
24/11/2014
Young people and those in work are now more at risk of poverty than the elderly and the unemployed, a report has shown.
The report was written by the New Policy Institute for The Joseph Rowntree Foundation, a British social policy research and development charity, that funds a UK-wide research and development programmes. It showed that over the last decade there has been a large fall in pensioner poverty, whereas the number of people under 25 who are hard up has increased, as well as the amount of working poor.
This is due to the “vast increase” in zero-hour contracts and low paid self employment. The report showed that there are around 1.4 million contracts that do not guarantee a minimum number of hours of work. As a result, two-thirds of people who found work last year are paid less than the Living Wage.
The government has now claimed that poverty is at its lowest level since in 1980s, yet incomes are now on lower on average than 10 years ago, and the average self-employed person earns 13% less than they did five years ago, claims the report.
During the last 10 years only a fifth of low paid workers managed to move into better paid jobs.
Julia Unwin, chief executive of the Joseph Rowntree foundation said:
“We are concerned that the economic recovery we face will still have so many people living in poverty. It is a risk, waste and cost we cannot afford: we will never reach our full economic potential with so many people struggling to make ends meet.
“A comprehensive strategy is needed to tackle poverty in the UK. It must tackle the root causes of poverty, such as low pay and the high cost of essentials.”
A government spokesperson said:
"The truth is, the percentage of people in the UK in relative poverty is at its lowest level since the mid-1980s," said a spokesperson for the Department for Work and Pensions (DWP).
"And the number of households where no one works is the lowest since records began,"
Need financial advice?
If you have any personal finance questions related to this news article, then please contact our financial advisers. You can get in touch by asking a question online, calling us on 0800 092 1245, or by arranging a visit.
Share this..
Related stories
US authorities desperate to support the dollar
Ben Bernanke, the Federal Reserve chairman, has this evening thrown his support behind the US currency in a rare vote of confidence from the Federal Reserve. The US government appears desperate to support the greenback which has now fallen to a 15 month low on the currency exchanges and is under constant pressure. While would expect the Federal Reserve to comment upon the currency at regular inter...
Read MoreWillie Walsh declares war on the unions
British Airways chief executive Willie Walsh has today declared war on the Unite union confirming that he will "not let" the union drag the company down. In what is becoming an ever more bitter war of words the gap between the Unite union and the British Airways management has never been wider than today after talks earlier this week failed to clear the air. While British Airways is standing fi...
Read MoreThe UK job market continues to weaken
The government is in a desperate race to try and refloat the UK economy before we see a major collapse in the UK employment market. A recent flurry of announcements from various recruitment agencies suggests that new positions in the UK are becoming more and more scarce and many companies are looking to cut back on their recruitment costs and employment base.
This does not bode will...
Google Is Officially The Top Brand Name In The UK
It seemed almost inevitable but it has now been confirmed that Google is officially the top brand name in the UK after a recent survey of over 2,000 consumers. The search engine giant has pushed Microsoft into second and Mercedes Benz into third place, grabbing top spot for the first time ever. If ever there was a more obvious choice it has yet to appear!
The story of Google is on...
Is there a secret plot to oust George Osborne
The last few days has seen rumours start to circulate in the press that George Osborne could be replaced as Shadow Chancellor in the short to medium term. Rumours are rife that David Cameron is under pressure from those at the top of the party to ensure his Shadow Cabinet is whiter than white. George Osborne recently brought the party to the attention of the masses after his much publicised meetin...
Read More