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<p>The Government uses a range of measures of poverty, including relative and absolute
low income. 16 per cent of rural households were in relative low income before housing
costs, compared with 18 per cent of urban households. After housing costs, the gap
widens, with 17 per cent of rural households in relative low income compared with
24 per cent of urban households.</p><p> </p><p>Government policy is based on economic
prosperity and helping people out of poverty wherever they live. In October 2018 the
Government announcement that it had accepted in full the recommendations the Low Pay
Commission made for future minimum wage rates. These future rates were announced by
the Chancellor in the Budget. The National Living Wage will increase by 4.9% to £8.21
per hour and rates for younger workers will also increase above inflation and average
earnings from 1 April 2019.</p><p> </p><p>In the Government’s response to the House
of Lords’ report on the Natural Environment and Rural Communities Act, the Government
reiterated its commitment to rural proofing policies from the earliest stages across
all departments. There is a continuous dialogue between Defra and other government
departments on rural proofing policies. This includes policies that address poverty
and other social issues.</p>
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