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UK poverty levels set to rise dramatically

The Institute of Fiscal Studies is warning that the UK will see a big rise in poverty over the next few years.

The BBC reports that 2.2 million children and 2 million adults were classed as living in poverty in 2009-2010. These figures are set to rise in 2012-13 by extra 600,000 children and 800,000 adults.

People are classed as living below the poverty line if they earn a salary at least 60% less than the national average, a figure which amounts to £347 after tax and national insurance for a couple with two children and £165 for a single adult.

The government hopes than the introduction of a new benefit payment, Universal Credit, will reduce the numbers of people living in poverty by around 1 million by 2020-2021.

The government hopes the “wide ranging reforms will have a dynamic impact on some of the poorest families”.

However, this will not prevent an increase in poverty according to the IFS, as it will be more than offset by other planned reforms. This means the government is likely to miss its targets set out in the Child Poverty Act 2010.

This was posted in Bdaily's Members' News section by Ruth Mitchell .