TABLES AND FIGURES
Table 1
NUMBER OF
CHILDREN BELOW
VARIOUS POVERTY
LINES, AFTER
HOUSING COSTS

 Income after housing costs

 50% median
 60% median  70% median


No of children, million 
  
s199697  3.0
 4.3  5.4

199798  3.0
 4.2  5.2

199899  3.0
 4.2  5.3

19992000  2.8
 4.1  5.2

200001  2.5
 3.9  5.0

200102  2.4
 3.8  4.9

Change 199899 to 200102  0.5
 0.4  0.4

Change required 200102 to 200405 to reduce by one quarter since 199899
 0.2  0.6
 1.0 

Source:
IFS calculations based on Family Resources Survey.
Note:
These numbers are almost the same as those to be found in Department
for Work and Pensions, (2003), Households Below Average Income
199405 to 200102, Leeds: CDS. Changes are based on unrounded
numbers.
Table 2
NUMBER OF
CHILDREN BELOW
VARIOUS POVERTY
LINES, BEFORE
HOUSING COSTS

 Income after housing costs

 50% median
 60% median  70% median


No of children, million 
  
199697  1.6
 3.2  4.6

199798  1.6
 3.2  4.6

199899  1.6
 3.1  4.5

19992000  1.5
 3.0  4.5

200001  1.4
 2.7  4.2

200102  1.3
 2.7  4.3

Change 199899 to 200102  0.3
 0.5  0.2

Change required 200102 to 200405 to reduce by one quarter since 199899
 0.1  0.3
 0.9 

Source and note: See Table 1.
Table 3
NUMBER OF
CHILDREN BELOW
VARIOUS POVERTY
LINES FIXED
IN REAL
TERMS, AFTER
HOUSING COSTS

 Income after housing costs


 50% median
 60% median  70% median

No of children, million  
 
  

199697  3.0
 4.3  5.4

199798  2.8
 4.2  5.1

199899  2.6
 4.0  5.0

19992000  2.2
 3.6  4.

200001  1.7
 3.0  4.2

200102  1.3
 2.5  3.7


Source:
IFS calculations based on Family Resources Survey.
Note:
These numbers are almost the same as those to be found in Department
for Work and Pensions, (2003), Households Below Average Income
199405 to 200102, Leeds: CDS. Changes and percentage changes
are based on unrounded numbers.
Table 4
NUMBER OF
CHILDREN BELOW
VARIOUS POVERTY
LINES FIXED
IN REAL
TERMS, BEFORE
HOUSING COSTS

 Income before housing costs

 50% median
 60% median  70% median


No of children, million  
 
199697  1.6
 3.2  4.6

199798  1.6
 3.2  4.6

199899  1.5
 3.1  4.5

19992000  1.4
 2.8  4.2

200001  1.2
 2.4  3.9

200102  1.0
 2.0  3.4


Source and note: see Table 1.
Table 5
EFFECT OF
POSSIBLE INCREASES
IN PERCHILD
ELEMENT OF
THE CHILD
TAX CREDIT
IN APRIL
2004

Increase in perchild elementof child tax credit in April 2004 (£ pw)
 Weekly perchild child tax redit rate, 2004 prices (£ pw)
 Number of children taken out of poverty (60% median income AHC) millions)
 Cost per year, 2004 prices (£ million)


Average earnings growth +£2  31.05
 0.1  660

Average earnings growth +£3  32.05
 0.2  1,000

Average earnings growth +£5  34.05
 0.4  1,690

Average earnings growth +£10  39.05
 1.0  3,460

Other possible changes in April 2004 (£ pw)
   
£3 on child benefit  n/a
 0.2  2,000

£6 on the family element of child tax credit
 n/a  0.2
 2,100 

Notes:
"Number of children taken out of poverty" is rounded
to the nearest 100,000 and "Cost per year" is rounded
to the nearest £10 million, but these should not be interpreted
as measures of accuracy. Changes are based on unrounded numbers.
The poverty line was allowed to move if the reform altered median
household income.
Source:
Taken from Brewer and Kaplan (2003).
Table 6
MEDIAN HOUSEHOLD
INCOME, 199697—200102
(IN 200102 PRICES)

 Income after housing costs

 Median income
 60% median (ie the poverty line)
 Annual growth 

199697  £231
 £138  5.3%

199798  £235
 £141  1.7%

199899  £239
 £144  2.0%

19992000  £249
 £149  4.0%

200001  £259
 £156  4.4%

200102  £274
 £165  5.6%

Change 199899 to 200102  £32
 £21  14.7%


Source:
From Brewer, Goodman, and Shephard (2003), How has child poverty
changed under the Labour Government? http://www.ifs.org.uk/inequality/bn32.pdf
Note:
These numbers are almost the same as those to be found in Department
for Work and Pensions, (2003), Households Below Average Income
199495 to 200102, Leeds: CDS. These figures relate to a
couple household with no children. Values for other types of household
can be calculated using the McClements scale, the details of which
can be found in Appendix B of DWP, 2003, op cit.
Table 7
POVERTY GAP
FOR HOUSEHOLDS
WITH CHILDREN,
199697 AND 200001

Poverty line  Poverty gap
 199697  200001


50% mean  Median (£/wk)
 39.58  46.69

 Mean (£/wk)  56.50
 71.27 
 Number of poor households with children (million)
 2.1  2.0

50% median  Median (£/wk)
 26.26  33.65

 Mean (£/wk)  46.23
 62.95 
 Number of poor households with children (million)
 1.4  1.2

60% median  Median (£/wk)
 38.73  43.74

 Mean (£/wk)  55.82
 68.49 
 Number of poor households with children (million)
 2.1  1.9

70%  Median (£/wk) 
71.73  84.89

 Mean (£/wk)  55.52
 62.44 
 Number of poor households with children (million)
 2.6  2.4


Notes:
From Brewer, Clark and Goodman (2003), op cit. Measures
of the mean poverty gap are very sensitive to outliers in the
data. Calculated in line with the methodology in Table 4, the
aggregate poverty gap has increased, but when we depart from HBAI
methodology by setting negative AHC incomes to zero, we find
that the aggregate poverty gap got smaller. The conclusions of
this section do not change if we look at income measured BHC,
however.
Figure 1. Children Falling Below Various Relative Income
Poverty Lines (AHC)
Source:
IFS calculations based on Family Expenditure Survey (for years
until 1993) and Family Resources Survey thereafter.
Note:
These numbers are almost the same as those to be found in DWP
(2003), op cit. Poverty lines are fractions of the contemporary
median of household income across the whole population (ie not
just for children).
Figure 2. Children Falling Below Various Relative Income
Poverty Lines (BHC)
Source:
See Figure 1.
Figure 3. On Track for 200405? Children in Households
Below 60% Median Income (AHC)
Source:
See Table 1.
Mike Brewer and Alissa Goodman
Institute for Fiscal Studies
11 September 2003
