The Risk Factors of Severe The Risk Factors of Severe Child Poverty in the UKChild Poverty in the UK

Monica MagadiMonica Magadi

Department of SociologyDepartment of SociologySchool of Social SciencesSchool of Social SciencesCity University, LondonCity University, London

Despite recent decline in child poverty Despite recent decline in child poverty in the UK, children from the poorest in the UK, children from the poorest families remain a legitimate concernfamilies remain a legitimate concern

Vast array of research on child Vast array of research on child poverty in the UK, but little is known poverty in the UK, but little is known about the circumstances of children in about the circumstances of children in severe povertysevere poverty

Why ‘severe’ child Why ‘severe’ child poverty?poverty?

AimsAims Establish the extent of severe child Establish the extent of severe child

poverty in the UKpoverty in the UK

Examine characteristics of children Examine characteristics of children experiencing severe childhood experiencing severe childhood poverty and identify factors that poverty and identify factors that place children at most risk of being place children at most risk of being severely poor severely poor

Data and MethodsData and Methods

Based on the 2004-05 Family Based on the 2004-05 Family Resources SurveyResources Survey

A multi-dimensional measureA multi-dimensional measure Child deprivationChild deprivation Parent deprivationParent deprivation Household incomeHousehold income

Adult Material Deprivation Adult Material Deprivation ItemsItems

A holiday away from home for at least one week a year A holiday away from home for at least one week a year Friends or family around for a drink or meal at least once a Friends or family around for a drink or meal at least once a

monthmonth Two pairs of all weather shoes for all adults in the benefit unitTwo pairs of all weather shoes for all adults in the benefit unit Enough money to keep your home in a decent state of Enough money to keep your home in a decent state of

decorationdecoration Household content insuranceHousehold content insurance Make regular savings of £10 a month or more for rainy days or Make regular savings of £10 a month or more for rainy days or

retirementretirement Replace any worn out furnitureReplace any worn out furniture Replace or repair electrical goods such as refrigerator or Replace or repair electrical goods such as refrigerator or

washing machine when brokenwashing machine when broken Have a small amount of money to spend each week on Have a small amount of money to spend each week on

yourself (not on your family)yourself (not on your family) Have a hobby or leisure activityHave a hobby or leisure activity

Child Material Deprivation Child Material Deprivation ItemsItems

A family holiday away from home for at least one week a yearA family holiday away from home for at least one week a year Enough bedrooms for each child of 10 or over of a different sex Enough bedrooms for each child of 10 or over of a different sex

to have their own bedroomto have their own bedroom Leisure equipment such as sports equipment or a bicycleLeisure equipment such as sports equipment or a bicycle Celebrations on special occasions such as birthdays, Christmas Celebrations on special occasions such as birthdays, Christmas

or other religious festivalsor other religious festivals Go swimming at least once a monthGo swimming at least once a month Do a hobby or leisure activityDo a hobby or leisure activity Have friends around for tea or snacks at least once a fortnightHave friends around for tea or snacks at least once a fortnight Go to toddler group/nursery/playgroup at least once a week (for Go to toddler group/nursery/playgroup at least once a week (for

children under six not attending primary or private schoolchildren under six not attending primary or private school Go on school trips (for those over six, or under six and Go on school trips (for those over six, or under six and

attending primary or private school)attending primary or private school)

Material Deprivation Material Deprivation ThresholdThreshold

Deprivation items in FRS represent a set of Deprivation items in FRS represent a set of questions which best discriminates between questions which best discriminates between poor and non-poor families poor and non-poor families

‘‘Enforced lack’ approachEnforced lack’ approach Weighted approach based on principal Weighted approach based on principal

components analysiscomponents analysis Bottom quintile considered deprivedBottom quintile considered deprived

Severe deprivation – deprived of both adult and Severe deprivation – deprived of both adult and child necessities (11%)child necessities (11%)

Non-severe deprivation – deprived of either adult Non-severe deprivation – deprived of either adult or child necessities (16%)or child necessities (16%)

Not deprived (73%)Not deprived (73%)

Low Income ThresholdLow Income Threshold Household income, equivalised based on the Household income, equivalised based on the

modified OECD equivalence scale modified OECD equivalence scale Income based on ‘after housing cost’ measureIncome based on ‘after housing cost’ measure Income poverty measurement based on Income poverty measurement based on

relative poverty linesrelative poverty lines Severe income poverty (‘poorest poor’)– bottom half Severe income poverty (‘poorest poor’)– bottom half

of those classified as being in poverty based on of those classified as being in poverty based on conventional 60% of median threshold (12% of conventional 60% of median threshold (12% of children)children)

Non-severe poverty – below 70% of median income Non-severe poverty – below 70% of median income (15%)(15%)

Not poor – above 70% of median income (73%) Not poor – above 70% of median income (73%)

Severe Child Poverty Severe Child Poverty DefinitionDefinition

Children are classified as being in ‘severe’ Children are classified as being in ‘severe’ poverty if they are in households with very low poverty if they are in households with very low income (i.e. ‘poorest poor’) in combination income (i.e. ‘poorest poor’) in combination with ‘severe’ material deprivation (i.e in the with ‘severe’ material deprivation (i.e in the bottom quintile with respect to both adult-bottom quintile with respect to both adult-related and child-related necessities). Those in related and child-related necessities). Those in households below 70 per cent of median households below 70 per cent of median income, in combination with either severe or income, in combination with either severe or non-severe deprivation are classified as being non-severe deprivation are classified as being in non-severe poverty. The remaining are in non-severe poverty. The remaining are classified as not being in poverty.classified as not being in poverty.

Poverty permutation and mean Poverty permutation and mean incomeincome

Poverty permutation Mean income for a one-child couple family (£)*

Per cent of children

Not in poverty-neither income poor nor deprived-not income poor, some material deprivation-income poor, no material deprivation

426514377160

78.352.011.315.0

Non-severe poverty-non-severe income poverty and deprivation-income poverty and deprivation, one of which is severe

193211179

17.77.6

10.1

Severe poverty(severe income poverty and deprivation)

112 4.0

Base Population: All children (n=16012) in 2004-5 FRS

What do families of children in What do families of children in severe poverty go without?severe poverty go without?

Item Not in poverty

Non-severe

poverty

Severe poverty

A holiday away from home once a year (adults)A holiday away from home once a year (children)Make regular savings of at least £10 a monthSmall amount of money to spend on self per weekReplace any worn out furnitureReplace or repair broken down electrical goodsHousehold content insuranceKeep home in a decent state of decorationFriends/family around for a drink/meal once a monthLeisure equipment e.g for sports or a bicycleA hobby or leisure activityGo swimming at least once a monthHave friends for snacks at least once a fortnightEnough bedrooms for each child aged 10+ of diff. sex

25.819.429.221.518.810.57.09.98.82.8

10.54.33.0

10.9

82.674.883.475.676.263.856.250.142.822.247.031.122.935.7

95.791.789.288.586.377.876.068.467.561.758.656.856.152.0

Base Population: All children (n=16012) in 2004-5 FRS

Regional Variations of Regional Variations of Severe Child Poverty in Severe Child Poverty in

the UKthe UK

83 84 84 83 79 76 76 80 75 79 7667

15 14 13 15 18 20 20 17 21 16 1924

2 2 3 3 3 3 4 4 5 5 5 9

0%10%20%30%40%50%60%70%80%90%

100%

South

wes

t

South

Wes

t

Easte

rn

Norther

n Irela

nd

Yorks

and

Hum

bers

ide

North-W

est & m

erse

yside

North E

ast E

nglan

d

Scotla

nd

Wales

East M

idlands

West

Midl

ands

Lond

on

Pe

r c

en

t o

f c

hil

dre

n

Not in poverty Non-severe poverty Severe poverty

Severe Child Poverty Severe Child Poverty Status by Economic Status by Economic Activity of ParentsActivity of Parents

Base Population: All children in 2004-5 FRS.

Column per cent

Economic Activity of Economic Activity of ParentsParents

Severe Child Poverty StatusSevere Child Poverty Status All All childrenchildrenNot in Not in

povertypovertyNon-Non-

severe severe povertypoverty

Severe Severe povertpovert

yy

One or more self One or more self employedemployed

1515 66 44 1313

Full-time work (lone or Full-time work (lone or both)both)

2121 44 11 1717

One FT, one PT (couple)One FT, one PT (couple) 2828 44 11 2323

One FT, one no work One FT, one no work (couple)(couple)

1919 1313 99 1818

Only PT work (lone or Only PT work (lone or both)both)

1010 1616 1616 1111

Workless parent(s)Workless parent(s) 88 5757 6969 1919

Unweighted casesUnweighted cases 1239412394 29792979 639639 1601216012

Severe Child Poverty Severe Child Poverty Status by Benefit ReceiptStatus by Benefit Receipt

Base Population: All children in 2004-5 FRS.

Column per cent

Benefit /tax credit receipt of Benefit /tax credit receipt of familyfamily

Severe child poverty statusSevere child poverty status All All childrechildre

nnNot in Not in povertpovert

yy

Non-Non-severe severe povertypoverty

Severe Severe povertpovert

yy

Disability Living Allowance (DLA)Disability Living Allowance (DLA) 66 88 33 77

Jobseeker’s Allowance (JSA)Jobseeker’s Allowance (JSA) 11 55 77 22

Incapacity Benefit (IB)Incapacity Benefit (IB) 33 77 77 44

Income Support (IS)Income Support (IS) 66 5151 4545 1515

Working Tax Credit (WTC)Working Tax Credit (WTC) 1515 1919 1111 1515

Child Tax Credit (CTC)Child Tax Credit (CTC) 6464 8787 7575 6969

None of the above benefits/tax None of the above benefits/tax creditscredits

3434 88 2121 2929

Unweighted casesUnweighted cases 1239412394 29792979 639639 1601216012

Severe Child Poverty Severe Child Poverty Status by Family Type Status by Family Type

and Sizeand Size

Base Population: All children in 2004-5 FRS.

Column per cent

Family Family compositioncomposition

Severe child poverty statusSevere child poverty status All All childrenchildrenNot in Not in

povertypovertyNon-Non-

severe severe povertypoverty

Severe Severe povertypoverty

Family typeFamily type- lone parentlone parent- couple parentscouple parents

17178383

52524848

47475353

25257575

Family sizeFamily size- one childone child- two children two children - three childrenthree children- four or more four or more childrenchildren

25254747202088

2222363624241818

2626343420202020

2525444421211010

Unweighted casesUnweighted cases 1239412394 29792979 639639 1601216012

Severe Child Poverty Severe Child Poverty Status by EthnicityStatus by Ethnicity

Base Population: All children in 2004-5 FRS.

Column per cent

Ethnic background of Ethnic background of household headhousehold head

Severe child poverty statusSevere child poverty status All All childrechildre

nnNot in Not in povertpovert

yy

Non-Non-severe severe povertypoverty

Severe Severe povertpovert

yy

WhiteWhite 9191 8282 6363 8888

Mixed /Chinese /other Mixed /Chinese /other 22 44 99 33

Asian and Asian BritishAsian and Asian British 55 1010 2020 66

Black and Black BritishBlack and Black British 22 55 88 33

Unweighted casesUnweighted cases 1239412394 29792979 639639 1601216012

High Risk of Severe High Risk of Severe Poverty Among Children:Poverty Among Children:

living in London, Wales and the Midlands ;living in London, Wales and the Midlands ; with workless parents; with workless parents; whose parents have low educational qualifications;whose parents have low educational qualifications; living in rented accommodation;living in rented accommodation; whose parents have no savings/assets;whose parents have no savings/assets; in large families of four or more children;in large families of four or more children; from ethnic minority groups, especially of Asian from ethnic minority groups, especially of Asian

origin; and origin; and in families with disabled adult(s).in families with disabled adult(s).

Selected risk factors of severe and non-Selected risk factors of severe and non-severe child poverty, relative to not being severe child poverty, relative to not being

in povertyin povertyFactor Non-severe

povertySevere poverty

Economic activity of parents (workless)- Self employed- couple or single, part-time work (no FT)- Couple or single, all in full-time work

0.34*0.60*0.15*

0.06*0.01*0.29*

Mother’s educational qualification (degree)- No qualification- non-degree qualification

3.45*2.54*

6.27*4.00*

Benefit receipt (no receipt)- Jobseeker’s Allowance- Incapacity Benefit- Income Support- Child Tax Credit

2.65*1.36*2.84*1.29*

0.810.750.54*0.80

Ethnic Group (White)-Asian-Black-Mixed /other

2.39*1.331.40*

6.08*2.51*2.82*

Interesting PatternsInteresting Patterns

Non-receipt of benefits generally Non-receipt of benefits generally associated with a higher risk of severe associated with a higher risk of severe child povertychild poverty Benefit take-up possibly an issue for families Benefit take-up possibly an issue for families

experiencing severe child poverty.experiencing severe child poverty.

Lone parents associated with lower risk of Lone parents associated with lower risk of severe poverty but higher risk of non-severe poverty but higher risk of non-severe poverty than couple parents.severe poverty than couple parents.