The measurement of living standards is a complex and multidimensional issue and, as such, there are many possible measures. It is generally accepted that income is central to any standard of living measurement.
Income statistics published in the Households Below Average Income series only allow analysis at Government office region level. Therefore, information for Birmingham is not available, although figures relating to the west midlands Government office region are. Three-year averages are used to report regional statistics as single-year estimates are subject to volatility. Weekly income levels are rounded to the nearest pound.
Median income (£ per week) Before housing costs After housing costs Period All families 20 per cent. of families with lowest incomes All families 20 per cent. of families with lowest incomes 1997-98 to 1999-2000 336 169 275 122 2005-06 to 2007-08 369 181 315 133
Median income (£ per week) Before housing costs After housing costs Period All pensioners 20 per cent. of pensioners with lowest incomes All pensioners 20 per cent. of pensioners with lowest incomes 1997-98 to 1999-2000 262 158 224 131 2005-06 to 2007-08 324 187 301 169 Notes: 1. These statistics are based on Households Below Average Income data. The Households Below Average Income series is available in the Library. 2. Small changes should be treated with caution as these will be affected by sampling error and variability in non-response. 3. The reference period for Households Below Average Income figures is single financial years. Three sample years have been combined as regional single year estimates are subject to volatility. 4. The income measures used to derive the estimates shown employ the same methodology as the Department for Work and Pensions publication ‘Households Below Average Income’ series, which uses disposable household income, adjusted (or ‘equivalised’) for household size and composition, as an income measure as a proxy for standard of living. 5. The figures are based on Organisation for Economic Co-operation and Development equivalisation factors. 6. Figures have been presented on both a Before Housing Cost and After Housing Cost basis. For Before Housing Cost, housing costs (such as rent, water rates, mortgage interest payments, structural insurance payments and ground rent and service charges) are not deducted from income, while for After Housing Cost they are. 7. Incomes are presented in 2007-08 prices and have been rounded to the nearest pound sterling. 8. Families are defined as a single adult or couple living as married and any dependent children, including same sex couples (civil partnerships and cohabitees) from January 2006. A household is made up of one or more families. Families can include individuals over state pension age. 9. The median income is the income of the middle person in the population, such that half the population have incomes below the median and half the population have incomes above the median. The median is used instead of the mean income because the mean is affected by outlying cases with very high income values. This is consistent with relevant public service agreement indicators and the Households Below Average Income publication.
Between 1998-99 and 2007-08 some 500,000 children were lifted out of relative poverty. Measures announced in and since Budget 2007 are expected to lift around a further 550,000 children out of poverty. Absolute poverty has been halved.
Addressing pensioner poverty has been a priority for this Government. We have targeted help on the poorest pensioners, those who need it most, while providing a solid foundation of support for all.
With the help of targeted support and additional funding there were 900,000 fewer pensioners living in relative poverty (after housing costs) in 2007-08 than in 1998-99.
Estimates of poverty, published in the Households Below Average Income series, only allow a breakdown of the overall number of people in poverty at Government office region level. Therefore, information for Birmingham is not available, though figures relating to the west midlands Government office region are available.
Poverty for all individuals is presented both before and after housing costs. Child poverty is presented before housing costs and pensioner poverty is presented after housing costs, in line with the relevant Public Service Agreements. The most commonly used figures relate to those with incomes below 60 per cent. of contemporary median income for the three groups.
Three-year averages are used to report regional statistics as single-year estimates are subject to volatility. Figures are quoted rounded to the nearest percentage point. The following tables show the percentage of all individuals (Table 1), children (Table 2) and pensioners (Table 3) in the west midlands Government office region who have incomes below 60 per cent. of the contemporary median income.
Proportion of individuals (percentage) Period Before housing costs After housing costs 1997-98 to 1999-2000 20 23 1998-99 to 2000-01 20 24 1999-00 to 2001-02 20 24 2000-01 to 2002-03 21 25 2001-02 to 2003-04 20 24 2002-03 to 2004-05 20 23 2003-04 to 2005-06 20 23 2004-05 to 2006-07 20 23 2005-06 to 2007-08 21 24
Proportion of children (percentage) Period Before housing costs 1997-98 to 1999-2000 28 1998-99 to 2000-01 27 1999-2000 to 2001-02 28 2000-01 to 2002-03 26 2001-02 to 2003-04 26 2002-03 to 2004-05 25 2003-04 to 2005-06 26 2004-05 to 2006-07 26 2005-06 to 2007-08 27
Proportion of pensioners (percentage) Period After housing costs 1997-98 to 1999-2000 28 1998-99 to 2000-01 28 1999-2000 to 2001-02 27 2000-01 to 2002-03 28 2001-02 to 2003-04 26 2002-03 to 2004-05 23 2003-04 to 2005-06 20 2004-05 to 2006-07 18 2005-06 to 2007-08 18 Notes: 1. These statistics are based on Households Below Average Income data. The Households Below Average Income series is available in the Library. 2. Small changes should be treated with caution as these will be affected by sampling error and variability in non-response. 3. The reference period for Households Below Average Income figures is single financial years. Three sample years have been combined as regional single year estimates are subject to volatility. 4. The income measures used to derive the estimates shown employ the same methodology as the Department for Work and Pensions publication ‘Households Below Average Income’ series, which uses disposable household income, adjusted (or ‘equivalised’) for household size and composition, as an income measure as a proxy for standard of living. 5. The figures are based on Organisation for Economic Co-operation and Development equivalisation factors. 6. Figures have been presented on both a before housing cost and after housing cost basis. For before housing cost, housing costs (such as rent, water rates, mortgage interest payments, structural insurance payments and ground rent and service charges) are not deducted from income, while for after housing cost they are. 7. Proportions have been rounded to the nearest percentage point.
A local child poverty indicator—including constituency level information—has been developed that captures the number and proportion of children in families in receipt of out of work benefits, or in receipt of tax credits where their reported income is less than 60 per cent. of median income. Details can be found via the HM Revenue and Customs website at:
http://www.hmrc.gov.uk/stats/personal-tax-credits/child_poverty.htm
The measure enables local partners to make an assessment of the level and geographical distribution of income deprivation in their area and focuses local partners on taking action to help raise family incomes.