This report sets out a comprehensive assessment of poverty in the UK in 2010. The Coalition Government recognises that poverty is a multifaceted and wide-reaching problem. This report considers progress against a broad range of poverty and deprivation indicators. These include income poverty, income inequality, indebtedness, unemployment and inactivity, educational and health inequalities, family structure and community breakdown. Set against international comparisons, income inequality in the UK in 2010 was at its highest level since comparable statistics began in 1961, and the proportion of the population living in relative poverty was higher than in many European countries. For young people the findings were particularly alarming. In the UK, the proportion of children growing up in workless households, and the proportion of young people not in work, education or training, was higher than in almost any other European country.