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Friday, 18 August 2017

Persistent Poverty Rates

What is poverty in the first world? Is it the same as poverty in the third world or can poverty only be measured against the lifestyles of those around you?

Persistent Poverty Rates Europe ......

Well the Office for National Statistics believes that not only is poverty measurable but it can be compared with other countries. Their definition of poverty is any household that subsists on less than 60 per cent of average national disposable income, which in Britain is a figure of £12,567 or below as disposable income but obviously differs for each country.

Well apparently in 2015 in Britain, the figure in persistent poverty (those households surviving on less than 60 per cent of average national *disposable income for two of the last three years), was 4.6 million people or 7.3 per cent of households who were defined as being in persistent poverty. This apparently is very good by European standards, with the EU average at 10.9 per cent e.g. France 8.5 per cent, and Germany at 11.3 per cent.

However as a note of caution as the figures also show that almost a third of Britons faced the risk of slipping into poverty for at least one year, with absolute poverty affecting 16.7 per cent of British households in 2015 (EU average was 17.3 per cent). This placed Britain 13th in the European league table.

EUROPEAN PERSISTENT POVERTY RANKINGS

  • Iceland - 2.9% in persistent poverty
  • Denmark - 4.3%
  • Sweden - 7%
  • Netherlands - 7.3%
  • United Kingdom - 7.3%
  • Finland - 8.3%
  • France - 8.5%
  • Ireland - 9.4%
  • Germany - 11.3%
  • Romania 19.3%
  • EU average 10.9%

Whether this state of affairs will survive Brexit is a concern, as currently we have high employment rates and with workless households at a record all time low ..... this may not be the case post Brexit according to some economists.

*A household's disposable income is the money available for spending after Income Tax, National Insurance and Council Tax are subtracted. It consists of wages and salaries from employment and self-employment, investment income, private and state pensions, and other benefits.

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