Millennials living in ‘relative poverty’, according to think tank
A report published by think tank the Resolution Foundation has suggested that 22% of ‘millennials’ – those born between 1981 and 2000 – are living in ‘relative poverty’.
‘Relative poverty’ is defined as living on less than 60% of median income. The report stated that government policies on housing have seen housing costs absorb ‘an increasingly large part’ of younger people’s earnings.
In contrast, the report showed that pensioner poverty rates have fallen when compared to previous generations. It stated that the three key factors for this are: higher private incomes from private pensions and work; lower housing costs due to ‘higher and earlier home ownership’; and policy changes, such as the introduction of Pension Credit.
Commenting on the matter, Fahmida Rahman, Researcher at the Resolution Foundation, said: ‘While poverty risks are down for pensioners, they are rising for younger working-age people and their children. Children born today are more likely to face poverty at the start of their lives than any other generation over the last 60 years.
‘Policymakers must turn their attention to supporting young families, and they can start by reversing benefit policies that are currently increasing the risks and depths of child poverty for our very newest generation.’