Summary 

Different measures of poverty capture different things. For example, some measures focus only on household income, others take housing costs into account, and some newer measures being developed are trying to bring in other costs and savings.  

The most commonly used measures are produced by the Department for Work and Pensions (DWP) in its Households Below Average Income (HBAI) statistics UK publications. These statistics come from the Family Resources Survey (FRS). The devolved governments publish additional breakdowns for their countries. 

The point at which you define poverty can vary. Absolute measures compare the resources people have in a year to a fixed poverty line in time. Relative measures look at the resources people have and compare them to what everyone else has in any given year. HBAI statistics set an income level (60% of median income) under which poverty is defined for the relative low-income measures of poverty. The statistics include four measures of households on low income that contain children – based on relative and absolute income, and before and after housing costs (BHC and AHC).  

Alongside statistics on low income, HBAI also measures and publishes data on other aspects of poverty. It includes statistics on levels of material deprivation, household food security, and food bank usage, including in combination with low income. Measures of material deprivation provide an indication of peoples’ ability to access or afford a range of everyday goods and services.  

DWP also publishes Income Dynamics (ID) Statistics, sourced from the University of Essex’s Understanding Society survey, which look at persistent low income and changes in household income, as well local area statistics on Children in low income families (CiLIF) that are based on administrative data from DWP and HMRC. 

Things to consider in statements about child poverty 

Given the range of measures available and the complexity of poverty, we consider that statistics on poverty, income inequality and material deprivation are most helpfully thought of as a basket of measures serving a broad range of needs. To focus on one measure risks masking a more nuanced picture of the nature of poverty.  

DWP has updated its method for estimating material deprivation, making the latest data for the financial year ending (FYE) 2024 not directly comparable to previous years. Since this is the first year using the updated method, only one year of data is available. Due to sample size and coverage issues in the Family Resources Survey (FRS) on which these measures are based, single year estimates for different UK countries and regions aren’t published.

The FRS has long shown a shortfall in benefit income compared to official administrative records. The impact of this is that data from the FRS alone can result in an overestimation of income-based poverty levels. As noted in its release strategy, DWP is linking benefit records to survey responses in a development to improve the accuracy of these estimates, for publication in March 2026. Income-based poverty measures will change because of the integration of administrative data with FRS data to source the HBAI. 

To complement the HBAI measures, a Deep Material Poverty measure has been developed to capture children experiencing a deeper level of poverty. Deep material poverty is based on material deprivation, specifically whether families can afford certain essential items. It therefore reflects a broader range of financial pressures, such as high costs and debt burdens that income-based statistics alone do not fully capture. Estimates for Deep Material Poverty will be published for countries within the UK for the first time in March 2026. 

What to look out for when hearing statements on this topic 

• Statements should be clear as to why a particular measure has been chosen to help users to understand whether it is appropriate for its use. Statements focusing on one measure can mask trends in other measures and when used in isolation, these statements have the potential to mislead.  

• Estimates for smaller sub-groups and geographical areas require combining multiple survey years together and/or are subject to less precision. Statements should avoid placing too much weight on short term changes or differences, as they are usually not statistically significant. 

• Local area statistics on children in low-income families are based on administrative data and are estimates before housing costs and therefore do not reflect disposable income. Work is underway within the DWP to develop after housing costs estimates of CiLIF, for publication March 2026. 

Wider supporting information 

There are Child Poverty strategies across the UK and devolved governments. 

• Our Children, Our Future: Tackling Child Poverty (UK) 

• Anti-Poverty Strategy (Northern Ireland)  

• Tackling Child Poverty (Scotland) 

• Child Poverty Strategy for Wales (see monitoring framework)  

Our blog on the trouble with measuring poverty provides more information on the different measures used to describe income-based poverty. 

Several charities and research institutions also publish data and analysis concerning income-based poverty. This includes the Joseph Rowntree Foundation, which produces poverty statistics using a variety of data sources including the FRS; and the Resolution Foundation, which publishes analysis on living standards.