Poverty is a complex and multidimensional issue and, as such, there are many possible measures of poverty. To reflect this, there are a wide range of indicators included in opportunity for all.
While income alone does not provide a wide enough measure of poverty, it is generally accepted that low income is central to any poverty measurement. The most common measure of low income used to capture poverty is individuals living in households with an income below 60 per cent. of contemporary median income, adjusted to take account of family size and composition.
The public service agreement (PSA) to halve child poverty includes three indicators of child poverty. These are relative low income (below 60 per cent. contemporary median household income), absolute low income (below 60 per cent. of 1998-99 median income uprated in line with prices), and combined low income and material deprivation.
The new PSA ‘Tackle poverty and promote greater independence in later life’ includes three indicators related to low income for pensioners. These are relative low income (below 60 per cent. contemporary median household income), relative low income (below 50 per cent. contemporary median household income), and absolute low income (below 60 per cent. of 1998-99 median income uprated in line with prices).