The number of children living without adequate resources rose to 36% in 2022/2023, according to the government’s new measure of poverty.
Working-age poverty also rose by 1% to 23%, while pensioner poverty remained unchanged.
On January 23rd, the Department for Work and Pensions (DWP) published updated poverty figures for 2022/2023—the latest year for which data is available. It used its new ‘Below Average Resources’ (BAR) methodology.
Alongside the data release, the DWP also published a response to the consultation on the new measures. It noted an “overwhelmingly positive” reception to their introduction.
Understanding the below average resources (BAR) measure
The BAR measure of poverty was first proposed by the Social Metrics Commission as a way to more accurately identify households lacking adequate financial resources.
Currently, the primary measure of poverty in the UK is Households Below Average Income (HBAI), which focuses solely on household income levels.
In contrast, BAR provides a more comprehensive approach, factoring in net income, savings, and essential expenses, such as childcare, disability-related costs, and housing.
This methodology results in a calculation known as Total Resources Available (TRA), which determines a household’s financial means on a weekly basis.
A household’s TRA is then compared against a poverty threshold, calculated over three years, to determine whether it falls into the Below Average Resources category and is therefore classified as living in poverty.
Trends in poverty across different groups
The latest data revealed a 1% overall increase in the number of individuals classified as Below Average Resources in 2022/2023.
All ethnic groups experienced an increase in individuals living with low resources. The most significant rises were among Asian/Asian British and other ethnic groups, which increased by 3% and 6%, respectively.
Across the four UK nations, Northern Ireland recorded the sharpest rise in individuals living with low resources, rising by 3% to 22%.
Scotland, England, and Wales each saw increases of 2%, reaching 23%, 24%, and 25%, respectively.
The government’s consultation on the new measure received strong support from charities, think tanks, academics, and two government departments.
Respondents concluded that BAR would offer a more detailed picture of poverty, facilitating better-targeted support. However, many also advocated for BAR to be used alongside the existing HBAI framework to maintain historical and international comparability.
The consultation on the new measures took place in early 2024. However, the response was delayed due to the general election.