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
3 Responses to “New report finds 29 per cent of young adults are living in poverty”
littleoddsandpieces
There is around 4 million young people 18-25 (including 16-18 year olds in Scotland) not registered to vote, because all the so-called big parties are all pro austerity that hits the poor more than any other income level in the UK.
There is a way that actually putting a cross on a bit of paper on 7 May is not voting, but bringing about food and fuel money for yourself.
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-littleoddsandpieces, Pro-Austerity man.
The Orbital Garden
The young people are suffering due to the housing shortage forcing up rents.
Young adults are leaving their parents homes and moving into the private rented sector. This puts pressure on rents as the supply of rented accommodation is far less than demand from the renters. This leds to the situation that the compitetion between renters forces up rents to a maxium that renters can afford leaving little surplus. Then any little nock will result in problems for the individual.
The only real solution to the issue is to deal with the supply and demand mismatch; and make sure their are enough properties available. All other solutions will simply pass the benefits directly to the landlord.
The real solution is building a lot more homes (of any type). The current household formation rate is 245k per year; so any housing target less than this will only make the problem worse (no matter other targets for PCT affordable!)
A target of 300k will take until 2030s to resolve the crisis; if they are actually delivered.
A much higher target will be required to have a meaningful impact; it was done before, after the war and can be done again this time with modern build practises and much faster. All we need is political will. Stop listening to the vested interests and resolve the issue.