§ The Secretary of State for Work and Pensions (Mr.Andrew Smith)Today I have published households below average income for 1994–95 to 2002–03. This is a report published under national statistics arrangements with headline results that cover Great Britain. Copies have been placed in the Library.
The report shows that there has been strong growth across the whole income distribution, and comparing incomes between 1996–97 and 2002–03, the poorest fifth of households have kept up with the strong income growth of middle-income households.
Steady progress has been made towards the Government's target to reduce by a quarter the number of children living in low-income households by 2004–05.
Some 700,000 fewer children are living in relative low income compared to 1996–97.
There has been a more dramatic reduction in children in "absolute" low income and this has now halved since 1996–97, equating to 2.1 million fewer children growing up with their opportunities undermined by acute financial hardship.
For pensioners below the same fixed threshold, the decline has been around two-thirds, from 2.7 million in 1996–97 to fewer than 1 million in 2002–03, meaning enhanced dignity and security for 1.8 million people during their retirement.