Local indicators of child poverty after housing costs, 2020/21

This report outlines the main findings relating to this year’s after housing costs (AHC) estimates of child poverty in local areas. The statistics estimate the impact of housing costs on the number and percentage of children living below 60% median income in local authorities and parliamentary constituencies by using local rent and house prices data to adjust the before housing costs (BHC) statistics, Children in Low Income Families: Local Area Statistics, released by the Department for Work and Pensions (DWP).

Key findings

• Child poverty was down overall in the UK in 2020/21, but is likely to be a temporary improvement related to the additional support provided to low-income families during the Covid-19 pandemic via the £20 uplift to Universal Credit.

• There is substantial regional variation in the AHC rates. Child poverty has continued to increase in the North East and Wales, and the North East has now overtaken London to have the highest AHC child poverty rate in the UK.

• At a local level, local authorities and constituencies in London continue to dominate the top 20 areas with the highest AHC child poverty rates. Rates are also high in other large urban local authorities and constituencies, including in Birmingham and Manchester, and in areas of the North East.

• The statistics highlight major inequalities in rates of child poverty both between and within regions of the UK, indicating that ‘levelling up’ is far from becoming a reality in the case of child poverty.