Incomes Falling Among Poorest Third of UK Households

July 22, 2018

An audit of living standards among households across the UK has found that income levels fell last year among the poorest third of people throughout the country.

The average income among middle-earners increased by 0.9 per cent in the year 2017-18 but those on lower wages saw a slight fall of 0.3 per cent during that same period, according to research by the Resolution Foundation think tank.

Not since 2012 have income levels grown more slowly over the course of a year than they did for the average Brit in 2017-18, the latest figures suggest.

But while mid-range earners haven’t seen their incomes increasing much in recent months, less well-off families have been struggling still further to make ends meet.


Worryingly, the Resolution Foundation’s data suggests that there was an increase of 3 per cent in the number of children who were living in poverty across the UK last year.

That estimate reflects a wider trend that has seen child poverty increase by a total of 11 per cent since the start of the decade, according to the foundation.

Increasingly, instances of child poverty are recorded within households in which one or more parents are working regularly but are seeing their incomes diminish or fail to keep pace with demands on their outgoings.

While presenting its latest research findings, the Resolution Foundation also said that the rises in child poverty rates recorded since 2010 might have been underestimated in their scale by the government.

The think tank has also aimed to emphasise the importance of in-work benefits to the finances of millions of households and families across the country.

“Reducing child poverty has been a goal of politicians from all parties in recent decades. But our analysis shows that child poverty is likely to have risen last year, and that rises since 2010 have been underestimated in official government data,” commented Adam Corlett from the Resolution Foundation.

“It’s vital that government and other policy makers understand the positive impact that cash transfers have on low-income families,” he added.

If you live anywhere in Scotland and you’re struggling with debt problems then Scotland Debt Solutions can help. Contact us directly to arrange a FREE and confidential consultation.

John Baird

Insolvency Adviser

Tel: 0800 063 9250

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