The dilemma of in-work poverty

By David Binder. Poverty is no longer a scourge for the unemployed alone. This statement summarises Alan Milburn’s first State of the Nation annual report on social mobility, launched last week. According to the report of the ex-British Labour Party politician, two thirds of poor children in the UK come from households where at least one person is in paid work (6.1 million poor people in working households: 4.1 million being adults and 2 million being children, 1 million more people than those in workless households). In addition, research tells us that a couple working full time on the UK minimum wage, with two children, falls well short of a ‘socially acceptable standard of living’. To meet this standard, they would in fact need to both earn £9.91 per hour, more than £3 more than the current minimum wage. Combine this with  faltering living standards for those on low to middle incomes and Milburn’s analysis becomes much more understandable. Read more...
David Binder is a Family Fiscal policy Consultant for the Christian social policy charity, CARE, where he conducts in-depth research on Family Tax, Welfare and Benefits. He blogs at: thoughtsofbinder.wordpress.com/