Working Out of Poverty: A study of the low-paid and the 'working poor'

Article

The rights to work and earn a decent living are timeless demands of the labour movement and basic characteristics of a fair society. However, almost six in ten poor households in the UK (57 per cent) have someone at work, up ten percentage points on a decade ago, according to new analysis presnted in this report. For too many families, moving into work has not meant moving out of poverty. This report presents the findings of our analysis into the extent and nature of both low pay and working poverty, and set out recommendations for tackling them.

The rights to work and earn a decent living are timeless demands of the labour movement and basic characteristics of a fair society. However, almost six in ten poor households in the UK (57 per cent) have someone at work, up ten percentage points on a decade ago, according to new analysis presnted in this report. For too many families, moving into work has not meant moving out of poverty.

While work is undoubtedly the surest route out of poverty, it is far from an inevitable one. This report uses new analysis to investigate the extent and nature of poverty among working families, with a particular focus on the relationship with low pay. We find that 'working poverty' is caused by a range of factors, requiring a sophisticated response. However, this complexity does not obscure the simple message that working poverty constitutes a drag on economic performance and a serious social injustice.

This report presents the findings of our analysis into the extent and nature of both low pay and working poverty, and set out recommendations for tackling them.

Related items

  1. Graphic depicting a stack of pound coins in the background and one sideways pound coin displayed on its side in the foreground

    The full-speed economy: Does running a hotter economy benefit workers?

    How a slightly hotter economy might be able to boost future growth.
  2. The outside of Rochdale town hall on a sunny day, with flowers in the foreground

    Making the most of it: Unitarisation, hyperlocal democratic renewal and community empowerment

    Local government reorganisation need not result in a weakening of democracy at the local level.
  3. West Midlands Metro Tram at Victoria Square in Birmingham city centre during 2022 Commonwealth Games

    Transport and growth: Reforming transport investment for place-based growth

    The ability to deliver transformative public transport is not constrained by a lack of ideas, public support or local ambition. It is constrained by the way decisions are taken at the national level.