The Risk Factors of Severe Child Poverty in the UK

1. The Risk Factors of Severe Child Poverty in the UK Monica Magadi Department of Sociology School of Social Sciences City University, London

2. Why ‘severe’ child poverty? • Despite recent decline in child poverty in the UK, children from the poorest families remain a legitimate concern • Vast array of research on child poverty in the UK, but little is known about the circumstances of children in severe poverty

3. Aims • Establish the extent of severe child poverty in the UK • Examine characteristics of children experiencing severe childhood poverty and identify factors that place children at most risk of being severely poor

4. Data and Methods • Based on the 2004-05 Family Resources Survey • A multi-dimensional measure • Child deprivation • Parent deprivation • Household income

5. Adult Material Deprivation Items • 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 month • Two pairs of all weather shoes for all adults in the benefit unit • Enough money to keep your home in a decent state of decoration • Household content insurance • Make regular savings of £10 a month or more for rainy days or retirement • Replace any worn out furniture • Replace or repair electrical goods such as refrigerator or washing machine when broken • Have a small amount of money to spend each week on yourself (not on your family) • Have a hobby or leisure activity

6. Child Material Deprivation Items • A 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 to have their own bedroom • Leisure equipment such as sports equipment or a bicycle • Celebrations on special occasions such as birthdays, Christmas or other religious festivals • Go swimming at least once a month • Do a hobby or leisure activity • Have friends around for tea or snacks at least once a fortnight • Go to toddler group/nursery/playgroup at least once a week (for children under six not attending primary or private school • Go on school trips (for those over six, or under six and attending primary or private school)

7. Material Deprivation Threshold • Deprivation items in FRS represent a set of questions which best discriminates between poor and non-poor families • ‘Enforced lack’ approach • Weighted approach based on principal components analysis • Bottom quintile considered deprived • Severe deprivation – deprived of both adult and child necessities (11%) • Non-severe deprivation – deprived of either adult or child necessities (16%) • Not deprived (73%)

8. Low Income Threshold • Household income, equivalised based on the modified OECD equivalence scale • Income based on ‘after housing cost’ measure • Income poverty measurement based on relative poverty lines • Severe income poverty (‘poorest poor’)– bottom half of those classified as being in poverty based on conventional 60% of median threshold (12% of children) • Non-severe poverty – below 70% of median income (15%) • Not poor – above 70% of median income (73%)

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

10. Poverty permutation and mean income Base Population: All children (n=16012) in 2004-5 FRS

11. What do families of children in severe poverty go without? Base Population: All children (n=16012) in 2004-5 FRS

12. Regional Variations of Severe Child Poverty in the UK

13. Column per cent Severe Child Poverty Status by Economic Activity of Parents Base Population: All children in 2004-5 FRS.

14. Column per cent Severe Child Poverty Status by Benefit Receipt Base Population: All children in 2004-5 FRS.

15. Column per cent Severe Child Poverty Status by Family Type and Size Base Population: All children in 2004-5 FRS.

16. Severe Child Poverty Status by Ethnicity Column per cent Base Population: All children in 2004-5 FRS.

17. High Risk of Severe Poverty Among Children: • living in London, Wales and the Midlands ; • with workless parents; • whose parents have low educational qualifications; • living in rented accommodation; • whose parents have no savings/assets; • in large families of four or more children; • from ethnic minority groups, especially of Asian origin; and • in families with disabled adult(s).

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

19. Interesting Patterns • Non-receipt of benefits generally associated with a higher risk of severe child poverty • Benefit take-up possibly an issue for families experiencing severe child poverty. • Lone parents associated with lower risk of severe poverty but higher risk of non-severe poverty than couple parents.