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<p>DWP’s Households Below Average Income (HBAI) publication provides annual estimates
on the number and percentage of people living in low-income households. HBAI is the
foremost source for data and information about household income in the UK. The statistics
are based on data from the Family Resources Survey (FRS) whose focus is capturing
information on incomes.</p><p>The latest release of the HBAI publication is available
here: <a href="https://www.gov.uk/government/statistics/households-below-average-income-199495-to-201516"
target="_blank">https://www.gov.uk/government/statistics/households-below-average-income-199495-to-201516</a></p><p>
</p><p>Absolute low income measures the number and proportion of individuals who have
an equivalised household income below 60% of the median in 2010/11, adjusted for inflation.</p><p>
</p><p>Relative low income measures the number and proportion of individuals who have
an equivalised household income below 60% of the median.</p><p>Household income is
measured as the total weekly household income from all sources, after tax, national
insurance and other deductions. An adjustment called equivalisation is made to income
to make it comparable across households of different size and composition.</p><p>The
median equivalised household income divides the population of individuals, when ranked
by equivalised household income, into two equal-sized groups, and unlike the mean
is not affected by extreme values.</p><p> </p><p>Relative and absolute low income
statistics are often utilised as measures of income poverty. We recognise the need
to understand the complex issues that some families face and to develop a new approach
to tackling poverty and engrained disadvantage. Because the root causes are not financial,
our approach goes beyond the safety net our welfare system provides</p><p> </p><p>New
analysis carried out by my Department shows that children living in families where
no one works are significantly more disadvantaged, and achieve poorer outcomes than
other children including those living in lower-income working families. This is why
<em>Improving Lives: Helping Workless Families</em>, published on 4 April, focuses
on tackling the complex barriers faced by many disadvantaged families and provides
a framework for a continuing focus on improving their children’s outcomes, now and
in the future.</p>
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