§ Lord Higginsasked Her Majesty's Government:
Whether the definition of poverty referred to by Baroness Hollis of Heigham on 28 September (H.L. Deb., col, 943) in relation to child poverty is that which the Government use in relation to pensioners; and [HL4388]
Why their definition of child poverty given by the Baroness Hollis of Heigham on 28 September (H.L. Deb., col, 943) makes no allowance for the number of children in a household. [HL4389]
§ Baroness Hollis of HeighamPoverty is a multi-faceted problem. There is no single definition that we use.
We published the second annual report, Opportunity for All: one year on—making a difference, on 21 September 2000. The report contains a full set of indicators that are used to monitor progress in tackling poverty.
The measure of income used when looking at the proportion of either children or pensioners below different thresholds of income is net equivalised household income. The process of equivalisation involves the adjustment of household income to take into account variations in the size and composition of the households in which individuals live. It reflects the common-sense notion that, in order to enjoy a comparable standard of living, a household of two adults with four children will need a higher income than a person living alone. The income of the family is therefore adjusted downwards in relation to that of the single person in order to allow sensible income comparisons between the different household types. The adjustment made takes into account both the number of adults and also the number and ages of children living in a household.