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Low-paid and ‘working poor’

On 3 January 2008, the Institute for Public Policy Research (IPPR) published a report (Working out of poverty: a study of the low-paid and the ‘working poor’) which uses new analysis to investigate the extent and nature of poverty among working families, with a particular focus on the relationship with low pay. The report finds 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.

57% of poor households in the UK have someone at work, up ten percentage points on a decade ago. For many families, moving into work has not meant moving out of poverty. This report says that, while work is undoubtedly the surest route out of poverty, it is far from an inevitable one.

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

Working out of poverty: a study of the low-paid and the ‘working poor’