How is relative poverty measured in the UK?

Relative poverty in the UK is measured by comparing a household's income to the median income of all households.

In the United Kingdom, the measurement of relative poverty is based on a household's income in relation to the median income of all households. This is a widely accepted method of measuring poverty, as it takes into account the overall wealth of a society and how it is distributed.

The UK government defines a household as being in relative poverty if their income is below 60% of the median income, after housing costs. This threshold is adjusted each year to reflect changes in the median income. The data used to calculate this is collected through the Family Resources Survey, which gathers information on income and living conditions from a sample of UK households.

This method of measuring poverty is relative because it is based on the standard of living in a particular society at a particular time. It recognises that poverty is not just about having enough to survive, but also about being able to participate fully in society. Therefore, as the overall wealth of society increases, the income needed to avoid poverty also increases.

However, it's important to note that this measure does not take into account wealth, only income. This means that a household with a low income but substantial savings or assets would not be considered to be in poverty. Similarly, it does not consider the cost of living, which can vary significantly across different parts of the UK.

The relative poverty measure is useful for comparing poverty rates over time and between different countries. However, it is also criticised for not capturing the full complexity of poverty, as it does not consider factors such as debt, access to services, or the quality of housing. Despite these limitations, it remains a key tool for understanding poverty in the UK.