Persistent low income
Published
- 1. Navigate toMain facts and figures section
- 2. Navigate toThings you need to know section
- 3. Navigate to By ethnicity (before housing costs) section
- 4. Navigate to By ethnicity (after housing costs) section
- 5. Navigate to By ethnicity and age group (before housing costs) section
- 6. Navigate to By ethnicity and age group (after housing costs) section
- 7. Navigate to Entering low income (before and after housing costs) section
- 8. Navigate to Leaving low income (before and after housing costs) section
- 9. Navigate toData sources section
- 10. Navigate toDownload the data section
1. Main facts and figures
- between 2018 and 2022, people in households in the ‘other’ ethnic group were the most likely out of all ethnic groups to be in persistent low income both before housing costs (27%) and after housing costs (38%) – however, this data is based on a small number of respondents and may be less reliable as a result
- people in households in the Asian (16%) and black (13%) ethnic groups were the next most likely to be in persistent low income before housing costs
- people in households in the black (25%) and Asian (24%) ethnic groups were the next most likely to be in persistent low income after housing costs
- people in households in the white and mixed ethnic groups were the least likely to be in persistent low income both before and after housing costs
- among white British people, pensioners were the most likely out of all age groups to be in persistent low income before housing costs (11%)
- people in households in the black ethnic group were the most likely to enter low income after housing costs (16%) – those in households in the 'other' ethnic group were the most likely to enter low income before housing costs (14%) – the data for ‘other’ ethnic group is based on small number of respondents and may be less reliable as a result
- out of all ethnic groups, households in the black ethnic group had the biggest difference in the percentage of people leaving low income before housing costs (48%) and after housing costs (37%)
Further research:
According to a parliamentary research report on Poverty in the UK, based on the Households below average income statistics, relative low income rates are highest for people in households in the Pakistani or Bangladeshi ethnic group. Rates are lowest in white households.
Joseph Rowntree Foundation research in 2024 (PDF opens in a new window or tab), found that people in Bangladeshi, Black African and Pakistani households are all 3 times more likely to move into very deep poverty each year, with incomes far below the poverty line, compared to people in White households. In addition, at least two-fifths of people in these households, including around half of children in Bangladeshi and Black African households, experience very deep poverty in at least 1 year out of 4. Further regression analysis in the report on the factors that shape someone’s likelihood of being pushed into or exiting very deep poverty, found that even after taking into account their family structure, work or housing situations, people of Bangladeshi, Black African and Pakistani heritage still remain 2 to 3 times more likely to experience persistent very deep poverty.
In Measuring Poverty 2023, the Social Metrics Commission defines their core measure of poverty as “the extent to which someone’s resources meet their needs”. This accounts for differences between households such as childcare costs, and access to savings and assets. As of March 2024, the Department for Work and Pensions is developing ‘Below Average Resources’ statistics in line with the recommendations of the Social Metrics Commission.
2. Things you need to know
What the data measures
The data shows the percentage of people living in households in the UK that are in persistent low income before and after housing costs.
The data uses the total income brought into the household on a weekly basis by everyone who lives there, after tax, National Insurance and other deductions. Housing costs include rent and mortgage interest payments.
Households are in low income if they live on less than 60% of the median income. According to the Income Dynamics data, median income (before housing costs) was £31,356 per annum for a couple with no children in the period from January 2021 to December 2022. Persistent low income means the household had low income for at least 3 out of 4 consecutive survey interviews between January 2018 and December 2022.
Low income entry and exit rates are percentages of households who move into or out of low income across 2 survey waves. Because sample sizes in each 2-wave period are small, the rates presented here are the average across 3 of those 2-wave periods. Read more about how income is measured.
The data relates to households of either one person or a group of people sharing cooking facilities and a living room or dining area. It must be their main or only home.
Percentages are rounded to the nearest whole number.
Not included in the data
Data based on fewer than 100 responses have not been included. Percentages less than 0.5% have been suppressed. This is to protect people’s confidentiality.
The ethnic groups used in the data
Data is shown for 6 aggregated ethnic groups:
- Asian
- black
- mixed
- white British
- white other
- other
Some households contain people from different ethnic backgrounds. The ethnicity assigned to the household is that of the ‘household reference person' – usually the person with the highest income. The data does not account for people of different ethnic backgrounds who live in the same household.
The values for households of unknown ethnicity were not recorded and therefore are not present in the data or the charts and tables on this page.
Methodology
Read the Income Dynamics Background information and methodology note for more information about the data on this page.
Household incomes are adjusted (or ‘equivalised’) to take into account the number of adults and children who live there.
There is large regional variation in ethnic minority populations. Some ethnic minorities are clustered in areas with high housing costs, whereas other ethnic groups are clustered in areas with lower housing costs. As a result some households may have bigger differences in their income before and after housing costs than others.
The figures on this page are based on survey data.
Find out more about:
- interpreting survey data, including how reliability is affected by the number of people surveyed
- how weighting is used to make survey data more representative of the whole group being studied
In the data file
See Download the data for:
- January 2010 to December 2022
- persistent low income estimates based on both 60% and 70% of median income
- persistent low income estimates before and after housing costs
- entries and exits into low income, before and after housing costs
3. By ethnicity (before housing costs)
| Ethnicity | % | Number of respondents |
|---|---|---|
| All | 9 | 22,928 |
| Asian | 16 | 2,266 |
| Black | 13 | 717 |
| Mixed | 7 | 280 |
| White | 8 | 19,098 |
| White British | 8 | 18,075 |
| White other | 6 | 1,023 |
| Other | 27 | 123 |
Download table data for ‘By ethnicity (before housing costs)’ (CSV) Source data for ‘By ethnicity (before housing costs)’ (CSV)
Summary of Persistent low income By ethnicity (before housing costs) Summary
The data for people in mixed and ‘other’ ethnic group households is less reliable as it is based on a smaller number of people surveyed.
The data shows that, before housing costs such as rent or mortgage payments:
- 9% of all people were in persistent low income
- 27% of people in households in the ‘other’ ethnic group were in persistent low income – the highest percentages out of all ethnic groups
- 8% of people in white households were in persistent low income – the lowest percentage
- 16% of people in Asian households and 13% of people in Black households were in persistent low income
4. By ethnicity (after housing costs)
| Ethnicity | % | Number of respondents |
|---|---|---|
| All | 12 | 22,928 |
| Asian | 24 | 2,266 |
| Black | 25 | 717 |
| Mixed | 12 | 280 |
| White | 11 | 19,098 |
| White British | 11 | 18,075 |
| White other | 9 | 1,023 |
| Other | 38 | 123 |
Download table data for ‘By ethnicity (after housing costs)’ (CSV) Source data for ‘By ethnicity (after housing costs)’ (CSV)
Summary of Persistent low income By ethnicity (after housing costs) Summary
The data for people in mixed and ‘other’ ethnic group households is less reliable as it is based on a smaller number of people surveyed.
The data shows that, after housing costs:
- 12% of all people were in persistent low income
- 38% of people in households in the ‘other’ ethnic group were in persistent low income, followed by 25% of people in black households – the highest percentages out of all ethnic groups
- 11% of people in white households were in persistent low income – the lowest percentage out of all ethnic groups
5. By ethnicity and age group (before housing costs)
| All | Children | Pensioners | Working-age adults | |||||
|---|---|---|---|---|---|---|---|---|
| Ethnicity | All % | All Number of respondents | Children % | Children Number of respondents | Pensioners % | Pensioners Number of respondents | Working-age adults % | Working-age adults Number of respondents |
| All | 9 | 22,928 | 10 | 4,726 | 11 | 5,358 | 7 | 12,844 |
| Asian | 16 | 2,266 | 21 | 768 | 8 | 176 | 14 | 1,322 |
| Black | 13 | 717 | 16 | 201 | N/A* | 84 | 12 | 432 |
| Mixed | 7 | 280 | N/A* | 84 | N/A* | 22 | 6 | 174 |
| White | 8 | 19,098 | 9 | 3,554 | 11 | 4,965 | 7 | 10,579 |
| White British | 8 | 18,075 | 9 | 3,328 | 11 | 4,807 | 7 | 9,940 |
| White other | 6 | 1,023 | 7 | 226 | 11 | 158 | 5 | 639 |
| Other | 27 | 123 | N/A* | 43 | N/A* | 10 | N/A* | 70 |
Download table data for ‘By ethnicity and age group (before housing costs)’ (CSV) Source data for ‘By ethnicity and age group (before housing costs)’ (CSV)
Summary of Persistent low income By ethnicity and age group (before housing costs) Summary
Data is not shown for some ethnic groups if the numbers surveyed are too small to be reliable.
The data shows that, before housing costs:
- among children, those in Asian households (21%) were the most likely to be in persistent low income, followed by those in households in the Black ethnic group (16%)
- children in white households (9%) were the least likely to be in persistent low income
- among working-age adults, those in households in the Asian (14%) and black (12%) ethnic groups were more likely to be in persistent low income than those in mixed ethnicity households (6%) and white households (7%)
- among pensioners, 11% of those in white households were living in persistent low income
6. By ethnicity and age group (after housing costs)
| All | Children | Pensioners | Working-age adults | |||||
|---|---|---|---|---|---|---|---|---|
| Ethnicity | All % | All Number of respondents | Children % | Children Number of respondents | Pensioners % | Pensioners Number of respondents | Working-age adults % | Working-age adults Number of respondents |
| All | 12 | 22,928 | 17 | 4,726 | 10 | 5,358 | 11 | 12,844 |
| Asian | 24 | 2,266 | 32 | 768 | 8 | 176 | 21 | 1,322 |
| Black | 25 | 717 | 27 | 201 | N/A* | 84 | 24 | 432 |
| Mixed | 12 | 280 | N/A* | 84 | N/A* | 22 | 12 | 174 |
| White | 11 | 19,098 | 16 | 3,554 | 10 | 4,965 | 10 | 10,579 |
| White British | 11 | 18,075 | 16 | 3,328 | 10 | 4,807 | 10 | 9,940 |
| White other | 9 | 1,023 | 9 | 226 | 13 | 158 | 8 | 639 |
| Other | 38 | 123 | N/A* | 43 | N/A* | 10 | N/A* | 70 |
Download table data for ‘By ethnicity and age group (after housing costs)’ (CSV) Source data for ‘By ethnicity and age group (after housing costs)’ (CSV)
Summary of Persistent low income By ethnicity and age group (after housing costs) Summary
Data is not shown for some ethnic groups if the numbers surveyed are too small to be reliable.
The data shows that, after housing costs:
- among children, those in Asian (32%) and black (27%) households were the most likely out of all ethnic groups to be in persistent low income
- children in white British households (16%) were more likely to be in persistent low income than households in the white 'other' ethnic group (9%)
- among working-age adults, those in black (24%), Asian (21%), and mixed (12%) households were more likely to be in persistent low income than those in white households (10%)
- among pensioners, those in the white 'other' ethnic group (13%) were the most likely to be in persistent low income, and those in Asian households (8%) were the least likely – however, values for households in the black, ‘other’ and mixed ethnic groups are not shown due to small sample sizes
7. Entering low income (before and after housing costs)
| After Housing Costs | Before Housing Costs | |||
|---|---|---|---|---|
| Ethnicity | After Housing Costs % | After Housing Costs Number of respondents | Before Housing Costs % | Before Housing Costs Number of respondents |
| All | 8 | 64,973 | 7 | 66,870 |
| Asian | 15 | 5,434 | 13 | 5,880 |
| Black | 16 | 1,861 | 10 | 2,144 |
| Mixed | 10 | 746 | 6 | 791 |
| White | 8 | 55,015 | 7 | 56,060 |
| White British | 8 | 52,081 | 7 | 52,965 |
| White other | 11 | 2,934 | 8 | 3,095 |
| Other | 11 | 313 | 14 | 382 |
Download table data for ‘Entering low income (before and after housing costs)’ (CSV) Source data for ‘Entering low income (before and after housing costs)’ (CSV)
Summary of Persistent low income Entering low income (before and after housing costs) Summary
A person enters low income if they move from not being in low income in one survey period to being in low income in the next survey period. The data shows average rates of entry into low income for surveys between January 2018 and December 2022.
The data shows that:
- people in households in the 'other' ethnic group (14%) and Asian households (13%) were the most likely to enter into low income before housing costs out of all ethnic groups
- people in mixed households were least likely to enter into low income before housing costs (6%)
- people in Black (16%) and Asian (15%) households were the most likely to enter into low income after housing costs
- people in White households were least likely to enter into low income after housing costs (8%)
8. Leaving low income (before and after housing costs)
| After Housing Costs | Before Housing Costs | |||
|---|---|---|---|---|
| Ethnicity | After Housing Costs % | After Housing Costs Number of respondents | Before Housing Costs % | Before Housing Costs Number of respondents |
| All | 36 | 14,385 | 40 | 12,488 |
| Asian | 33 | 3,110 | 38 | 2,664 |
| Black | 37 | 916 | 48 | 633 |
| Mixed | 37 | 244 | 35 | 199 |
| Other | 20 | 225 | 26 | 156 |
| White | 36 | 9,743 | 40 | 8,698 |
| White British | 35 | 9,046 | 39 | 8,162 |
| Any other white background | 49 | 697 | 55 | 536 |
Download table data for ‘Leaving low income (before and after housing costs)’ (CSV) Source data for ‘Leaving low income (before and after housing costs)’ (CSV)
Summary of Persistent low income Leaving low income (before and after housing costs) Summary
A person leaves low income if they move from being in low income in one survey period to not being in low income in the next survey period. The data shows average rates of leaving low income for surveys between January 2018 and December 2022.
The data shows that:
- in every ethnic group except the mixed ethnic group, people had a higher chance of leaving low income before housing costs than after housing costs
- the biggest difference in the percentage of people leaving low income before and after housing costs was in black households (48% and 37%)
- the highest percentage of people leaving low income before housing costs was in households in the white 'other' ethnic group (55%), followed by 48% of people in black households
- people in households in the white 'other' ethnic group (49%) were the most likely out of all ethnic groups to leave low income after housing costs
- people in households in the ‘other’ ethnic group were the least likely to leave low income both before (26%) and after (20%) housing costs – this data is based on a small number of respondents and is less reliable as a result
9. Data sources
Source
Type of data
Survey data
Type of statistic
Official statistics
Publisher
Department for Work and Pensions
Publication frequency
Yearly
Purpose of data source
Income Dynamics statistics are designed to report on income movements and the persistence of low income for children, working-age adults, and pensioners in the UK.
Reporting on persistent low income rates for children is required under UK law.
Income Dynamics statistics complement Households Below Average Income (HBAI) statistics by providing measures which are based on household income over time. This is because Income Dynamics are based on Understanding Society (USoc) data, a longitudinal survey run by the University of Essex.
Income Dynamics statistics also includes analysis of movements across the income distribution, including low income entry and exit rates.
10. Download the data
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measure ethnicity ethnicity_type time time_type geography_code geography gender gender_type age_bracket age_bracket_type value value_type denominator