This item was published during the term of a previous administration that ended in April 2007
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Figures on Households Below Average Income
13/03/2003
The Executive has today released estimates of the
proportions and numbers of children, working age adults
and pensioners living in low income households in
Scotland.
The estimates are derived from the Department for Work
and Pensions' Households Below Average Income (HBAI)
analysis, which is based on the Family Resources Survey
(FRS).
Main Points
Children
In 1996/97 - the baseline year against which progress is
measured - an estimated 380,000 children (34 percent) were
living in low income households. In absolute terms, this
had fallen to 170,000 children (16 percent) by 2001/02. The
equivalent number of children in relative low
income households in 2001/02 was 320,000 (30
percent).
Children in Severe Low Income Poverty
In 1996/97, the number of children experiencing
severe low income (below 50 percent median) 230,000 (21
percent). In absolute terms this had fallen to 100,000
children (9 percent) by 2001/02. The equivalent number of
children in severe low income households in relative terms
in 2001/02 was 170,000 (16 percent).
Working Age Adults
In 1996-97, an estimated 600,000 working age adults (20
percent) were living in low income households. In
absolute terms this had fallen to 400,000 working age
adults (13 percent) by 2001/02. The equivalent number of
working age adults in relative low income households in
2001/02 was 570,000 (19 percent).
Pensioners
In 1996/97, an estimated 250,000 pensioners (29
percent) were living in low income households. In absolute
terms this had fallen to 80,000 pensioners (9 percent) by
2001/02. The equivalent number of pensioners in relative
low income households in 2001/02 was 170,000 (20
percent).
Change in Median Income
There has been an increase of 19 percent in GB median
income 'After
Housing Costs', from £231 to £274 per week, in real
terms, between 1996/97
and 2001/02. Consequently, the 60 percent low income
threshold, which is
used to derive the relative low income poverty
figures, has increased by
£26 per week in real terms.
Time Series and Alternative Thresholds
The Annex provides estimates for each of the years,
1994/95 to 2001/02, for a number
of alternative low-income thresholds.
The figures are estimates based on a sample survey and
are therefore subject to sampling variation. Due to the
relatively small Scottish sample, extreme caution should be
exercised in the interpretation of small year-on-year
fluctuations. Identification of trends must be based on
several years of data.
1996/97 is the baseline against which progress is
measured for the Social Justice Annual Report.
The relative low income measure compares against the
mean or median in the same year. The absolute measure
compares against the mean or median in the baseline year of
1996/97, uprated to remove the effects of inflation.
Figures - up to 2000-01 - using both measures were included
in the Executive's last Social Justice Annual Report in
November 2002.
In order to allow comparisons of living standards
between different household types, income is adjusted to
take into account variations in the size and composition of
the household in a rocess known as equivalisation.
This adjustment reflects the notion that a family of
several people requires a higher income than a single
person in order for both households to enjoy a comparable
standard of living. The key assumption is that all
individuals in the household benefit equally from the
combined (equivalised) income of the household.
The DWP have published
today a much fuller report covering mainly GB, but with
some limited results for Scotland.
Due to a minor change in the DWP methodology for
deriving working-age adult and pensioner results, there
have been minor changes to previous years' data for these
groups.
DWP intend to make changes to the way in which the base
survey data is grossed, reflecting the results of the 2001
Census. The revision to the grossing regime is likely to
take place towards the end of this year. This may result in
future revisions to the data series for Scotland.