Londoners living in poverty

A new study reveals that 28% of Londoners are in poverty. And according to research commissioned by independent charitable foundation Trust for London, a quarter of all households rely on housing benefit to meet their housing costs.

Are YOU living in poverty?

You're living in poverty if you are a couple with two children and have £357 a week after housing costs Credit: Lynne Cameron/PA Wire

According to the Department for Work and Pensionsif you're a couple with two children you are living in poverty if, afterhousing costs, you have £357 a week.

If you're a couple without children, that figure is £220 a week.

Work alone no solution to London's poverty

The Chief Executive of Trust for London, which commissioned the research has called on policymakers to tackle the issues by building more affordable housing and employers to pay a Living Wage.

Work on its own is not a solution to London's poverty because of the growing number of low-paid jobs. The majority of working-age adults and children in poverty are now in families that work. Londoners are trying hard but are getting stuck; with many being impacted by high housing costs, low pay and limited career progression.

London's economy may be doing better than the rest of the country but that obscures the fact it has the highest poverty rate.

– Bharat Mehta, Chief Executive of Trust for London

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13 of 19 outer boroughs unaffordable on housing benefit

Housing benefit will no longer cover private renting costs for many families Credit: Tim Ireland/PA Wire

Housing benefit will no longer cover the housing costs of private renting, workless families with 3 or more children anywhere in London.

For low-income single adults without children, a third of London's boroughs (34%) are unaffordable under the welfare reforms.

Demand for the cheapest properties means that even 13 of London's 19 outer boroughs are unaffordable for families reliant on housing benefit.

1 in 5 Londoners paid less than London Living Wage

The main findings of the report looking at the circumstances of the 2.1 million people who are living in poverty in London are:

  • 58% of those in poverty live in Outer London (10 years ago it was 50%)
  • For the first time there are more private renters in poverty than social renters
  • 43% (830,000) of people in the private rented sector live in poverty, more than any other tenure (this figure has doubled in the last 10 years)
  • Almost 1 in 5 working Londoners (17%) were paid below the London Living Wage (£8.30) in 2012. This is an increase of more than 40% over 5 years and means 600,000 people are in low-paid jobs
  • The majority (57%) of working-age adults and children in poverty are now in families that work

A quarter rely on housing benefit

A quarter of all households in London rely on housing benefit Credit: PA

Housing costs are not just a problem for those in the centre of London without a job: 50% of housing benefit claimants live in outer London and 40% are in work.

A quarter of all households in London rely on housing benefit to meet their housing costs, compared to a fifth in England as a whole.

High housing costs mean that benefit cuts will be much deeper in the capital. Rents here are as much as twice the England average: £950 in outer London and £1,300 in inner London.

Young adults are among the largest group affected. London attracts increasing numbers of young people seeking opportunities but unemployment among 16 to 24 year olds in the capital has risen from 15-25% in the last 10 years.

28% of Londoners in poverty

The capital has problems with child poverty, young adult unemployment, low pay and high housing costs according to the study Credit: Owen Humphreys/PA Wire

The fourth edition of London's Poverty Profile shows that 28% of people in London are in poverty. This is seven percentage points higher than the rest of England and of the 20 English local authorities with the highest levels of child poverty, seven are in London.

The unemployment rate in London at 7% is still higher than the England average, while in the 'Olympic boroughs' of Barking & Dagenham and Newham it is 10%, higher than any of the major English cities.

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