The New Policy Institute blames high levels of unemployment and soaring house prices for the startling figure
Research published today by the New Policy Institute (NPI) has shown that 29 per cent of 19-25-year-olds in the UK are living in poverty. This is six points higher than ten years ago, representing the biggest increase in poverty amongst any age group.
Especially concerning is the finding that a half of young adults with their own children are living in poverty. However, the poverty rate for this group has not increased significantly over the last ten years, whereas the poverty rate for people of the same age without children has risen considerably.
Interestingly, the poverty rate for non-working students has fallen over the last decade; it is now at 40 per cent.
Both a lack of jobs and rising house prices have been blamed for this figure. According to the report, around two- thirds of the increase can be attributed to the fall in employment among young adults: in the last decade the proportion of young adults in households where everyone worked has fallen by eleven percentage points to 44 per cent.
There has been a three point increase in the percentage of young adults living in houses where noone works, and an eight point increase in houses where only some members worked.
The report also finds that a high and growing number of young adults now live in private rented population which has contributed to the rise in poverty among this age group. Since 2002/2, the proportion of young adults privately renting increased by ten percentage points to 37 per cent.
The NPI concludes that this has had an adverse effect on poverty rate among working households in private rent for the reason that the earnings of workers have not risen in line with housing costs.
Ruby Stockham is a staff writer at Left Foot Forward. Follow her on Twitter
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