Income poverty is set to rise by 2020, and two key policy strategies to increase household incomes are reducing worklessness and improving prospects for those trapped in low-wage, low-skilled work. This study examines the economic activity and skills levels of households with different incomes and identifies various types of households with common combinations of economic activity status and skill levels.
It looks at the economic activity status and skill levels of households with different incomes. The research finds:
- In households without children, those in poverty are more likely to be workless, less likely to be in full-time work and more likely to have no qualifications. Families with children in poverty have a high concentration of either one or both parents out of work, and wider variation in skill levels, mainly due to mothers being out of work to care for children.
- The most common type of household with children in poverty is male breadwinner couples, where the man is working and the woman is looking after the children, or working part-time.
- The most common type of childless household in poverty is workless people who tend to have no-to-medium qualifications. They are mainly single people who tend to be younger and are disproportionately likely to have a health problem.