National Poverty Data 2023

Updated August 2023 with new figures from the Households Below Average Income Survey (HBAI)

While local poverty data is crucial to understanding the extent and impact of poverty in Greater Manchester, national poverty data can show trends in poverty over time and suggest how diverse groups of people are affected differently by poverty.

The graphs on this page show poverty trends for the whole of the UK. These trends (such as the extent of poverty among children and pensioners) are likely to be replicated across Greater Manchester. Most of the data used to understand poverty in the UK comes from the Households Below Average Income Survey (HBAI), which is collected annually. As with financial year ending (FYE) 2021, collection of data was affected by the coronavirus (COVID-19) pandemic.

Although government restrictions introduced in response to the pandemic were significantly eased over the course of the survey year, the change in survey mode from established face-to-face interviews to telephone interviews in response to the pandemic persisted for the duration of the survey year 2021 to 2022. This affected both the size and composition of the achieved sample. This year, extensive analysis of low-income measures was taken across several dimensions, with the level of bias in the data resulting from the mode change being lower than FYE 2021 and having less influence on the statistics. However, there remain areas where caution is advised when making comparisons with previous years and when interpreting larger changes.

Relative poverty (BHC) in the UK over time

This chart shows relative poverty rates before housing costs (BHC) over time for different groups of the population. The relative poverty rate BHC reduced slightly between 1994 and 2013, falling from 19% to 15%. It then rose steadily until 2019 but fell during the first year of the Covid-19 pandemic to 16%.

Children and pensioners experienced significantly higher rates of poverty than working-age adults throughout the 90s and early 2000s, with a gap remaining throughout the 2010s and into the 2020s.

In all groups, poverty rates fell during the first year of the Covid-19 pandemic, but have gone on to rise in the subsequent year – a result of the withdrawal of the additional financial support provided to households at the onset of the Covid-19 pandemic.

Absolute poverty (BHC) in the UK over time

Relative poverty is defined in the UK as having a household income of less than 60% of the median household income. In contrast, a household is classed as being in absolute poverty if the household income is less than 60% of the median household income for 2010/11 (adjusted for inflation).

This chart shows absolute poverty rates (BHC) for different groups of the population overtime.

Absolute poverty fell significantly until the late 2000s, when the rate of poverty reduction slowed substantially. Children are more likely to be in absolute poverty than any other age group, a gap that arose in 2008/09 and is still present in 2021/22. Absolute poverty levels have been stagnant for all groups bar pensioners since the last year, with a rise seen for pensioners.

Relative poverty (AHC) in the UK over time

This chart shows relative rates over time once housing costs are taken into account. Measuring poverty after housing costs (AHC) allows for a more accurate picture of the income a household has access to as all households face housing costs and looking at incomes once these costs are taken into account gives a better reflection of the resources available to the household.

On this measure, the relative poverty rate for children has remained high throughout the last 28 years, fluctuating between 34% and 27%. In contrast, the poverty rate among pensioners has fallen substantially to a low of 13% in 2012/13, although it has since risen.

Relative poverty (AHC) for all age groups decreased between 2019/20 and 2020/21, with child poverty rates seeing the largest fall of 4%, likely a result of additional financial support provided to households at the onset of the Covid-19 pandemic. This reversed in 2021/22, with a rise in relative poverty (AHC) of at least 2% in all age groups bar working-age adults.

Absolute poverty (AHC) in the UK over time

This chart shows absolute poverty rates after housing costs are taken into account.

On this measure, the absolute poverty rate has reduced from 41% in 1994/95 to 17% in 2021/22.

The poverty rate for pensioners had fallen the most dramatically, with pensioners being the age group least likely to experience absolute poverty – despite being the only group to experience a rise in absolute poverty rates (AHC) in 2021/22.

In contrast, children are most likely to live in absolute poverty, with almost a quarter (23%) of children in 2021/22 experiencing absolute poverty.

Measuring the impacts of poverty

In addition to calculating the changes to the rate of poverty in the UK over time, data can be gathered to assess the impacts of poverty in terms of material deprivation and food insecurity.

Material deprivation

Material deprivation is the inability to afford basic resources and can be measured by asking households if they are able to afford a range of basic items and experiences.

This chart shows the percentage of households with children that cannot afford common items and experiences for their children.

It shows that 15% of households are unable to afford a house large enough that there are enough bedrooms for every child aged 10+ to not share a bedroom with a sibling of the opposite sex.

Around a third (35%) of households with children are unable to afford at least one week’s holiday away from home with family per year; similarly, a third of households cannot afford to let their children attend an organised activity outside school each week (33%).

A significant proportion of parents experience material deprivation, with almost a third (31%) unable to make savings of £10 or more per month, 29% unable to replace broken electrical goods and 34% unable to afford to replace worn out furniture.

Material deprivation affects all age groups, although pensioners are less likely than other age groups to be unable to access essential items and experiences.

A quarter (25%) of pensioners state that they cannot afford to go out socially at least once a month.

If their cooker were to break, 7% would be unable to replace it as they would have no money for this. Similarly, 7% of pensioners would be unable to pay an unexpected expense of £200.

Food security in impoverished households

Households experiencing food insecurity lack sufficient and varied food to support an active and healthy lifestyle.

Children living in relative poverty are more likely than any other age group to live in households that experience food insecurity.

In 2021/22, only 78% of children in relative poverty lived in food-secure households, compared to 97% of pensioners.