U.K. Austerity Under Spotlight as In-Work Poverty Persists

(Bloomberg) -- Almost 2.5 million British workers were living in poverty in 2017, a statistic that may fuel criticism over the scale of hardship in the U.K. after almost a decade of austerity.

The figures come after a United Nations report accused the government of ideological spending cuts since 2010 that led to “tragic” consequences for some. The claims by Philip Alston, the UN’s special rapporteur on extreme poverty and human rights, were rejected by the government.

But data from the Office for National Statistics Thursday show that 17% of the U.K. population was in poverty in 2017, up from 15.9% in 2016 and above the European Union average for the first time since 2010. A third of people cannot face unexpected expenses, while 24% cannot afford a one-week annual holiday.

In-work poverty has scarred the U.K. since the financial crisis, the result of years of wage stagnation and cuts to benefits as the government sought to bring down the budget deficit. Among the working population, 8% were in poverty in 2017, the report said.

Among EU countries, Britain had the 12th highest poverty rate, as defined by households with disposable incomes below 60% of the national median. It scored better when measured by persistent poverty -- those in poverty in the current year and at least two of the three preceding years.

In 2017, less than 8% of the population -- about 4.7 million people -- was in persistent poverty. That compares with an EU average of more than 11%.

“For those experiencing relative low income, it is more likely to be for a shorter period of time,” the ONS said.

To contact the reporter on this story: Andrew Atkinson in London at a.atkinson@bloomberg.net

To contact the editors responsible for this story: Fergal O'Brien at fobrien@bloomberg.net, David Goodman, Jill Ward

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