Poor pay hits 20% workers

One-fifth of Britons in work are on pay of less than two-thirds of typical hourly earnings and, according to the Joseph Rowntree Foundation, women are much more likely than men to be in low-paid jobs. About one in eight of the people in badly paying jobs also live in poor households.

In a report published today, researchers show that the take-up of in- work benefits like Family Credit has increased rapidly, with women making up the majority of recipients. The report concludes that a combination of a more generous Family Credit for poor families with school-age children and a minimum wage would make a significant dent in poverty.

The report coincides with a paper in the forthcoming issue of the Economic Journal which shows that Family Credit strongly encourages lone mothers to work.