Issue date
· New official statistics show working-age poverty in Wales was not falling before the pandemic, despite employment growth.

· ‘Levelling up pay will put fuel in the tank for a faster recovery’, says Wales TUC

TUC analysis of new official poverty figures has found that working-age poverty in Wales has not fallen since 2010/11, despite unemployment falling significantly in the years before the pandemic.

The proportion of working-age people living in poverty was 22% in 2010/11, and remains at 22% in 2019/20, according to new figures from the Office for National Statistics.

The lack of progress comes despite unemployment in Wales falling from 7.9% in 2011 to 3.2% in 2020.

Wales TUC says that as we recover from the pandemic we need to prioritise creating good quality, fair work jobs that do not leave families stuck in poverty.

Wales TUC General Secretary Shavanah Taj said:

“Hard work should pay off for everyone in Wales, no matter who you are or the job you do. But millions of our workers are denied a fair share of the wealth they create.

“The Prime Minister keeps talking about levelling up – let’s see it for the low paid. Get the minimum wage up to £10 an hour without delay. And provide the funding necessary to ensure that all key workers get the pay rise that they deserve.

“This isn’t just about doing the right thing for workers. High streets and business in Wales won’t recover if people have nothing to spend. Pay growth is fuel in the tank. It will drive our recovery much faster, supporting business growth and job creation.”

Editors note

Proportions of workers in (1) working-age poverty and (2) unemployment for UK nations and regions*

UK nation or region

(1) Working-age poverty %

(2) Unemployment rate %

2010/11

2019/20

Change (ppts)

Jan-Mar 2011

Jan-Mar 2020

Change (ppts)

North East

22

24

2

10.2

5.4

-4.8

North West

23

20

-3

7.7

4.1

-3.6

Yorks & Humber

23

23

0

9.1

4.2

-4.9

East Mids

22

19

-2

7.7

3.8

-3.9

West Mids

24

23

-1

9.6

5.1

-4.5

Eastern

18

18

-1

6.2

3.8

-2.4

London

28

24

-4

9.2

4.7

-4.5

South East

16

18

2

5.8

2.9

-2.9

South West

20

19

-1

6.4

3.2

-3.2

Wales

22

22

1

7.9

3.2

-4.7

Scotland

19

19

1

7.9

4.2

-3.7

Northern Ireland

19

17

-2

7.3

2.4

-4.9

UK

21

21

-1

7.8

4

-3.8

* A worker is considered in working-age poverty if their household income is less than 60% of median household income (after housing costs). Source: Poverty figures are taken from Households Below Average Incomes 1994/95-2019/20 and unemployment figures from the Labour Force Survey, both of which are publications of the Office for National Statistics. Poverty figures are a three-year average, ending with the cited year.

- Changes needed to end working poverty:

The TUC is calling on the UK government to improve pay and increase the supply of well-paid work by:

· Increase the minimum wage to at least £10 an hour

· Make sure all key workers get a decent pay rises

· Make permanent the £20 per week increase in universal credit (and legacy benefits)

· Raise statutory sick pay to £330 per week (to match the level of the real Living Wage) and extend to the two million low-paid workers currently excluded

· Protect the freedom of all working people to have a union in their workplace negotiating fair pay

Wales TUC press contacts:

Liam Perry - lperry@tuc.org.uk