Use the interactive tool below to navigate indicators that show how poverty and inequality affects working-age adults in London.
Working-age adults: Indicators
19-year-olds without Level 2 or Level 3 qualifications
19-year-olds without Level 2 or Level 3 qualifications (2004/05-2019/20)
Qualification levels of 19-year-olds have significantly improved over time. This is particularly evident in Inner London where the proportion of 19-year-olds without Level 3 qualifications (A Levels and equivalents) has fallen from 61.1% in 2004/05 to 33.5% in 2019/20.
As a result of this, 19 year-olds in Inner London now perform more or less on a par with young people in Outer London and better than their peers in the rest of England (where 44.1% of 19-year-olds lack Level 3 qualifications).
A similar trend can be seen in Level 2 qualifications (the equivalent of GCSEs), although the proportion of 19-year-olds without these qualifications (in London and the rest of England) has risen slightly since 2014/15.
Attainment gap for disadvantaged students
Level 3 attainment gap between Free School Meals and non-Free School Meals students at 19 years-of-age (2005 - 2019)
The attainment gap between advantaged and disadvantaged students is lower in Inner London than in Outer London and lower in Outer London than it is in the rest of England.
In Inner London in 2019, 19 year olds who were eligible for Free School Meals at the end of Key Stage 4 were 14 percentage points less likely to have gained Level 3 qualifications (equivalent to A levels) than their peers who were not eligible for Free School Meals. In Outer London the figure was 20 percentage points and in the rest of England it was 28 percentage points.
Looking over the past decade, the attainment gap has remained fairly consistent, with Inner London always having a smaller gap than Outer London or the rest of England.
Benefit claimant change during the COVID-19 pandemic
Pandemic Claimant Count Change: Baseline and Increase Levels (2020-21)
- Every area has seen an increase in claims
- Average threefold increase
- Significant increase in areas with historically high levels of employment (shown in orange)
- Areas with higher numbers of food service, transportation and hospitality workers hit hard (east Newham, north Brent, south Waltham Forest and south Hillingdon)
Every area has seen an increase in the claimant count, with the average being almost a tripling across the 14 month period. The size of the increase, however, is uneven. While some areas have historically had high unemployment levels, other areas with traditionally high levels of employment have seen substantial increases, well over and above the London average, while others have been less impacted.
The first map above shows the size of the increase in each of London's ~4800 small statistical areas (LSOAs) and…
Child dependency ratio by area over time (2000 - 2030)
The child dependency ratio in the rest of England is higher compared to Inner London, but lower compared to Outer London.
In 2019, there were 33.7 children for every 100 working-age adults within Outer London. This figure is both higher than the child dependency ratio in Inner London (26.3 children per 100 working-age adults) and the rest of England (30.9 children per 100 working-age adults).
The child dependency ratio is an indication of how many under 16s working-age people need to support. Since 2000, the child dependency ratio has fallen in Inner London and the rest of England but risen in Outer London. Across London and England, the child dependency ratio is projected to peak to have peaked in 2019 before gradually declining.
Destinations of school leavers
Destinations of KS5 school leavers in London, after two years (2018/19)
34% of young people completing KS5 (post-GCSE qualifications) in London in 2018/19 were classed as disadvantaged, compared to 22% in the rest of England. The most common destination was higher education, with similar numbers of disadvantaged (41%) and non-disadvantaged (46%) students going to university. This is very different from the rest of England, where a lower proportion of people attend higher education overall and the gap between disadvantaged (21%) and non-disadvantaged (36%) students is much greater. Outside of London, young people are more likely to enter work (26%) or not sustain a destination for two terms (24%) than attend higher education, both of which are true of only 16% of disadvantaged London students.
Pupils are classified as disadvantaged in Year 11 if they are either eligible for free school meals in the last 6 yea…
Employment rate by highest qualification
Employment rate of 16-64 year olds by highest qualification level (2020)
Employment rates are, on average, higher amongst people with higher levels of qualifications: for example, in 2020 89.6% of Londoners aged 16-64 with qualifications higher than A-levels (such as university degrees) were employed compared to 43.3% for people with no qualifications.
Across all but the highest qualification level and the category “Other qualification”, employment rates are higher in the rest of England than they are in London. However, a much larger proportion of working-age people in London have qualifications higher than A-levels - 53% in London compared to 36% in the rest of England - meaning that overall employment rates are similar.
There are a number of reasons why people may not be employed, including that they are studying, retired, looking after the home, sick or unemployed. As such, it is not necessarily a bad thing…
Actual weekly hours by gross weekly pay quintile (2010-2020 (Q2/Q3))
Looking at hours worked within London and the rest of England can give us useful insight on our working patterns pre- and post-pandemic. Actual hours worked are heavily impacted by external factors, such as a pandemic, whereas usual hours are not expected to change much over the years.
Actual hours worked vary more across time and in particular between 2019 and 2020 for the bottom income quintiles. The decline in actual hours worked for the 2nd income quintile is most extreme between 2019 and 2020. Whereas in the rest of England, there is a clear decline for almost all quintiles but is most prominent in the bottom quintile.
Additionally, when disaggregating the data by gender we see a large gap between the amount of actual hours (and a smaller gap for usual hours) worked between men and women across the years. One reason could be because n…
Households affected by the benefit cap
London households affected by benefit cap (2014-2021 February)
The benefit cap limits the amount of benefit that most working-age people can receive. In London the limit is £23,000 per year or £15,410 for single adults with no children; this was reduced in 2015. The benefit cap is applied by either reducing Universal Credit or Housing Benefit (for those not claiming Universal Credit).
The benefit cap reduced the benefits of 46,374 more London families in February 2021 compared to February 2020 (pre-pandemic). This means that the number of families with their benefits capped in London has risen by more than double (232%) in the last year.
A possible explanation for this unprecedented increase could be the influx of new households on Universal Credit since the start of the pandemic. Furthermore, the additional £20 pound per week for those on Universal Credit could place households in a position where th…
Households and their work status
Work status of London households (2004 - 2019)
The proportion of working-age households where none of the adults are in employment (“workless households”) has been consistently low at 8% since 2016, having almost halved since 2004 when 15% of households contained nobody in employment. This means that in 2019, at least one adult does some work in 92% of working-age households in London.
In 2019 there were 3 million households in London (50%) where all adults were in work. Another 2.6 million households in London (43%) contained some working adults and some who were not in work.
Households and their work status by net income quintile
Work status of London households by net income quintile (2019/20)
This indicator shows that household work status is closely related to household net incomes. Overall, households with lower net incomes are more likely to include inactive, retired or unemployed adults.
For example, just 7.6% of those in the bottom 20% of the net income distribution live in households where all adults work, while 56.6% of those in the top 20% of the net income distribution live in households where all adults work. On the contrary, one in five of those in the bottom net income quintile live in workless households, compared to just 2.1% of those in the top net income quintile.
Life expectancy by London borough
Life expectancy at birth by London borough (2017-19)
This indicator shows overall life expectancy at birth as well as healthy life expectancy. The latter indicates the number of years a person can expect to live in good health rather than with a disability or in poor health.
Overall life expectancy is higher for women than for men in 2017 to 2019. This is true across all London boroughs. However, this is less clear for healthy life expectancy, with some boroughs having a longer healthy life expectancy for men than women. For example, healthy life expectancy for men in Tower Hamlets is 62.6 years whereas for women it is only 59.4 years.
The highest life expectancy for both men and women is in Westminster, with 84.9 and 87.2 respectively. The lowest life expectancy for both men (78.1 years) and women (82.3 years) is found in Barking and Dagenham, however it is notable that the borough performs…
Old-age dependency ratio by area over time (2000 - 2030)
Both Inner and Outer London have a lower old-age dependency ratio than the rest of England. In Inner London in 2020, there were 13.6 people over the age of 65 for every 100 working-age adults. This compares to 21.6 in Outer London and 32.1 in the rest of England.
The dependency ratio reflects the degree to which the working-age population and national and local government might need to support those who are retired. As the population ages, the dependency ratio is projected to increase quite rapidly.
Proportion of Londoners aged 16-64 on out-of-work benefits by benefit type (2013 - 2021 (Q1))
The proportion of working-age Londoners on out-of-work benefits fell between 2013 and 2018 after which it saw two years of modest increases. 2021 however has seen a large increase in Universal credit claimants (out of work) compared to early 2020 (4.6% to 10.6% of people aged 16-64).
The types of benefits claimed by those out of work has also changed in recent years, as Universal Credit has rolled out across the capital. For example, 0.2% of working-age Londoners were out of work and claiming Universal Credit in 2016. By February 2021, this proportion had risen to 10.6% of the working-age population.
Compared to London, the proportion of the working-age population on out-of-work benefits was higher in the rest of England between 2014 and 2020, however in the latest quarter for February 2021 the proportion of working age Londoners on out of…
Pay per hour
Indexed gross hourly pay in London and England (2002-2020)
In both London and the rest of England, growth in hourly earnings between 2014 and 2020 was fastest for the bottom 10% of jobs. Compared to 2008 (real term) level of hourly earnings, London has seen an increase of 13.2%. This is above the England average of 6.9%. The rise was likely driven by the increase in the minimum and living wages. The National Living Wage (paid to workers over 25) increased from £7.50 an hour in 2017/18 to £8.72 an hour in 2020.
Although, comparing hourly earnings between different time periods gives a whole other picture. When looking at the change in hourly earnings within the last year (in 2020 real terms) earnings decreased across all pay percentiles, although less so when comparing to that of 5 years ago. Since 2020, hourly gross pay seems to have increased for those around the median job pay percentiles and …
Pay per year
Indexed gross annual pay in London and England (2002-2020)
Annual earnings dropped tremendously since 2008 (in real terms) where in 2014 the bottom 10th percentile saw the largest decrease of 22.4%.
Since then, there has been an increase in annual, in particular for the top 90th percentile as gross annual pay also includes bonuses. In 2020, the 90th percentile is close to their 2008 level annual earnings by shy of 4%. The 10 percentile is still 14.3% below the 2008 levels of earnings.
Although, comparing annual earnings between different time periods gives a whole other picture. When looking at the change in annual earnings within the last year (in 2020 real terms) earnings have decreased across all percentiles, although less so when comparing to that of 5 years ago. Since 2020, annual gross pay seems to have increased for almost all job pay percentiles besides the top two.
The data on annual ea…
People sleeping rough by London boroughs
People seen sleeping rough by outreach workers by borough (2019/20)
More people are recorded sleeping rough in central London than they are in the outer boroughs. By far, Westminster is the borough with the most people recorded sleeping rough with just over 2,750 people known to outreach workers there, more than three times the number in Camden, the next highest borough. The most central area of London - the City - saw slightly over 430 people sleeping rough, but this should be seen in the context of the small size of the City. Newham is the borough with the third highest number of people sleeping rough (724 people seen), a sign of the eastward move of London’s population in general.
Poverty and family structure
Proportion of households in poverty by family type (2019-20)
Poverty rates amongst most household types in London are higher than in the rest of England. For example, the poverty rate for couple pensioners (23%) in London is almost twice that of couple pensioners (13%) in the rest of England. Similarly, 28% of couples with children are in poverty in London compared to 21% in the rest of England. Couples without children have similar poverty rates in both London (12%) and the rest of England (13%).
Single parents with children are more likely to be in poverty than any other type of household. Half of single parents in London (50%) were in poverty, more than four times the proportion of couples without children.
Poverty and life stages
Poverty for children, pensioners and working-age adults (2009/2010 and 2019/2020)
Children, working age adults and pensioners all have higher rates of poverty in London than in the rest of England. Of the three age groups, children have the highest poverty rates, with 38% of children in London in poverty in 2019/20, compared to 24% of working-age adults and 25% of pensioners.
In both London and the rest of England, poverty rates fell between 2009/10 and 2010/20 for children and working-age adults in the rest of England, although, poverty rates remained flat for children in the rest of England at 29%. Also, the poverty rate for pensioners rose in London but remained flat in the rest of England.
Poverty before and after housing costs by age
Proportion of Londoners in poverty after housing costs by age band (2019/20)
In both London and the rest of England, poverty rates (after housing costs) are highest amongst children and young people in 2019/20.
- Under a quarter of a million (220,000) children aged four and under live in households in poverty;
- More than a third of children aged up to 14 are in households in poverty (35% of those aged 0-4, 36% of those aged 5-9 and 41% of those aged 10-14); and
- Two out of five 15 to 19 year-olds (41%) live in households that are in poverty.
In contrast, one in five Londoners aged 25-29 (19%) live in households that are in poverty - the lowest rate for any age group.
Poverty rates in London are higher than those in the rest of England for people of all ages.
The impacts of housing costs on poverty in the capital can again be seen by comparing these findings to those from measures of poverty before housing cos…
Poverty definitions and thresholds
How much weekly income is needed to not be in poverty?
|Household types||Minimum Income Standard - Inner London (AHC), 2020||Minimum Income Standard - Outer London (AHC), 2020||UK poverty line - After Housing Costs, 2020||Destitution, 2020|
|Lone parent, one child (aged one)||£297||£315||£190||£95|
|Couple with two children (aged three and seven)||£514||£532||£346||£145|
Note: MIS figures are updated to reflect the report produced by Loughborough University for TfL in 2029. For family types where updates are not available we have carried forward the 2016/17 data and adjusted for inflation by CPIH. Destitution is defined by the JRF as people who went without 2 or more essentials in the past month because they couldn't afford them, or their income is extremely low
Data source: Poverty thresholds are from Households Below Average Income 2019/20, Department for Work and Pensions. Minimum Income Standard thresholds are based on the Minimum Income Standard (MIS) for London, Trust for London 2020. Destitution in the UK 2020, JRF
The table shows different definitions and thresholds necessary to not be considered either in poverty or deprived. The amount of income is dependent on the type of household.
Poverty for London adults, children and pensioners, by family work status
Number of children, adults, and pensioners in London in poverty by working status (2009/2010, 2014/2015 and 2019/2020)
As employment rates have increased in the capital, so too has the number of adults in poverty who are in working families. In 2009/10 870,000 working-age adults were in poverty in working families, compared to 1 million in 2019/20 (a 15% increase over the decade). This tendency is stronger for children in working families in poverty: 380,000 children were in this position in 2009/10, compared to 610,000 in 2019/20 (an increase of 60% over the decade).
In contrast, the number of working-age adults and children in poverty who are in workless families have both fallen over the last decade.
The number of pensioners in poverty in the capital has remained broadly stable in the last decade, with 260,000 in poverty in 2019/20.
Whilst there are more people in poverty in working families than in workless families, this - at least in part - is a refle…
Poverty rates by demographics
Poverty rates by demographic characteristics in London (2019/20)
Poverty rates vary significantly across different demographic groups in London and the rest of England.
Overall, poverty rates amongst men and women are similar. However, in the rest of England both men and women have a lower poverty rate (both 21%) compared to those in London (28% and 29% respectively).
Both in London and the Rest of England, poverty rates are higher for BME people (39% and 38%) than for White groups (21% and 19%). Amongst the different family types, single parents with children are most likely to experience poverty. In London, 53% of this group were in poverty in 2019/20. Between 2014/15 and 2019/20, London pensioners experienced the largest increase in poverty rates. The poverty rate for couple pensioners rose by 6 percentage points (from 15% to 21%) and for single pensioners also by 6 percentage points (from 22% to 28%…
Poverty rates by type of working household
Proportion of people in London in poverty by type of working household over time (1998/99 - 2019/20)
Household work status is closely related to the likelihood of the household being in poverty. This indicator focuses on poverty rates for families in London where at least one adult does some work. It shows that, on average, the fewer adults who are in work, the more likely the household is to be in poverty:
- Those where no adult works full-time but at least one works part-time have the highest poverty rate, with half of people (50%) living in such households being in poverty.
- In contrast, only 9% of people who live in households where all of the adults work full-time are in poverty.
- In households with two adults where only one works full time, the poverty rate is higher for those where the other adult does not work (34%) than those where the other adult works part-time (14%).
Poverty rates across all working households in London have incre…
Premature death by London borough
Premature deaths per 100,000 under-75 year olds by London borough (2017-19)
The rate of premature deaths is lower in the majority of London boroughs compared to England overall. However, 10 London boroughs have rates of premature deaths that are higher than that of England overall.
Premature deaths are calculated as an average across three years (from 2017 to 2019) and look at the mortality rate for all deaths under the age of 75. They are presented as a rate per 100,000 people aged under 75 in each area.
The average number of deaths per 100,000 under-75 year olds in England is 326, whereas in London it is 299. Barking and Dagenham has, on average, the highest premature death rate (404 per 100,000 under-75 year olds), whereas the City of London has the lowest rate (216 per 100,000 under-75 year olds).
Reasons for worklessness
Reasons for not working for men and women aged 16-64 in London (2020 (Q4))
This indicator shows the reasons for not working for men and women. The largest difference is amongst those who do not work because they are looking after their family or home, which is true for more than eight times as many women as men: there are 262,900 women within this category, but only 33,500 men. In contrast, unemployment is higher amongst men (161,900) than women (131,200).
Other categories of reasons for not working are broadly similar, for example with 99,500 men and 112,300 women not working because of long-term sickness.
The age distribution of the population
Population by age-groups (2019)
London’s population is comparatively young; the average (median) age in London is 35.6, compared to 40.3 in the UK overall.
More than one in 10 people living in Inner London (11.4%) are aged between 30 and 34. This compares to just 6.3% of those in the rest of England. More broadly, in Inner London, almost half the population is made up out of those who are in their early twenties to early forties (46.7%), compared to the rest of England where three in 10 (30.9%) are in this age group, and Inner London is home to a higher proportion of young people than Outer London.
This is caused by people moving to Inner London for work early in their careers and then leaving as they start families. The largest five-year age band is 30 to 34 year olds in Inner London, 35 to 39 year olds in Outer London and 50 to 54 year olds in the rest of England. A …
Travel times and income deprivation
Average travel time by public transport to jobs and services by neighbourhood income deprivation decile (2017)
Based on average travel times by public transport, Londoners have much better access to jobs and services than people in the rest of England. For example, the average journey time by public transport to the nearest large employment centre from the 10% most deprived areas is 20 minutes in London compared to 26 minutes in the rest of England.
Based on the same measure, people living in the most income-deprived areas of London have slightly better access than those in less income-deprived areas. The average journey time to public services is more than 20% longer for the least deprived areas in London than the most deprived areas.
Journey times are only part of how well Londoners can access jobs and services. Price is also an important factor with people on low incomes unable to make the most of the opportunities provided by the city’s publi…
Underutilised labour market capacity
Underutilised labour market capacity in London (2008/2009 - 2019/2020)
The number of people wanting to work more than they currently do has fallen steadily in London since 2012. For example, 10.5% of Londoners aged 16-64 were in this position in 2019/20, compared to 17.6% in 2011/12.
Each component part of this group has also fallen. For example, 2.4% of working-age adults were in part-time jobs because they could not find a full-time job in 2019/20, compared to 3.7% in 2011/12. The combined proportion of people who are not working but would like to (unemployed or inactive but wanting work) has fallen from 13.9% of the working-age population in 2011/12 to 8.1% in 2019/20.
Whilst this fall is positive, for those still left wanting more work, there are clear implications for the experience of in-work poverty, demonstrated in other London's Poverty Profile indicators.
Unemployed men and women
Unemployment counts in London by sex (Mar-May 1992 to Mar-May 2021)
The number of unemployed people in London almost halved since its post-financial crisis peak in 2011 (421,000) to 209,000 in 2019. The unemployment count has increased significantly in 2021 to 329,000 people, reaching levels not seen since 2014. This increase is likely the result of the slowdown of the economy caused by the coronavirus pandemic, the very start of which is captured by this indicator. Other factors, such as those put on furlough and the change in inactivity within the labour market, should also be considered.
Over the past three decades, the gender split of unemployment has become more even. In 1993 there were almost two unemployed men for every unemployed woman, but by 2014 the numbers were broadly similar with 167,000 of both genders unemployed. Since then, unemployment had fallen consistently for women (91,000 in 2019) a…
Unemployment rate over time (2004/05 - 2019/20(Q4))
After peaking in the aftermath of the financial crisis, unemployment followed a steady decline until 2019: in Inner London, it halved from 10.3% in 2009 to 4.5%, dropping below its pre-crisis levels by 2014; while in Outer London, it declined from 9,1% in 2011 to 4.6% in 2019, and it did not recover its pre-crisis levels until 2016.
Throughout this period, unemployment has remained consistently higher in London than in England as a whole, where the rate stood at 3.9% by the end of 2019. There has been, nevertheless, a convergence of unemployment rates between England and London and within London itself: whereas in 2004 the difference between the rates in Inner London, Outer London and England was 3,1 and 4,4 percentage points respectively, by 2019 the Inner London rate was 0,1 percentage points lower than in Outer London, and only 0,6 pe…
Unemployment rate by London borough
Unemployment rate by London borough (2015-17 and 2018-20 (Q4))
The figures presented here are averages of each three-year period. Measured in the fourth quarter (January-December), the borough with the average highest unemployment rate in the 2018-2020 period was Waltham Forest (8.2%), replacing Tower and Hamlets from Q2, whose average unemployment rate sits now just below the London average at 5.1%. The borough with the lowest unemployment rate remained Richmond upon Thames (3.2%).
In most London boroughs, unemployment fell between 2017 and 2020, with the largest falls taking place in Tower Hamlets (-4.7ppts), Barking and Dagenham (-2.6ppts) and Redbridge (-2.3ppts).
Between 2017 and 2020, unemployment rose the most in Waltham Forest (+3.3 ppts), Hammersmith and Fulham (1.7 ppts) and Lambeth (+1.7ppts).
Unemployment rates by age group
Unemployment rates by age group (2004 - 2020 (Q4))
Unemployment rates for all age groups are higher in London than in the rest of England, and have been so for the whole time period covered by this indicator. Unemployment in London is most prevalent amongst those aged between 16 and 24, with 17.6% of this group being unemployed in 2020. This compares to just 4.7% of those aged between 25 and 64. Unemployment is also low for those aged 65 and over, at 3.8% in 2019/20, however relatively few in this group are either in work or seeking work as the majority are retired.
Compared to other age groups, the unemployment rate for those aged between 16 and 24 rose faster following the financial crisis and has fallen faster since 2014, bottoming in 2017 to then rise slightly until 2019. The significant rise in the unemployment rate for those aged between 16 and 24 in 2020 reflects the impact of the…
Workers in temporary employment
Proportion of workers in London in temporary employment (2009-2020)
Over 5% of people in work in London are on temporary contracts. Temporary contracts are more prevalent amongst women in work than men: 50% more women than men were on a temporary contract in 2020.
The proportion of workers on temporary contracts has remained relatively consistent over the past decade, fluctuating between just under 5% and just over 6% of all workers. In 2020, 1.27% of women in work and 0.56% of men in work were on a temporary contract and reported that it was because they could not find a permanent job.
Worklessness by ethnicity group
Proportion of London's working-age population who are not in paid work by ethnic group (2010 and 2020 (Q4))
In the decade up to 2020, every major ethnic group in London has seen a fall in the proportion of people who are not in paid work.
People of Pakistani/Bangladeshi background have the highest rates of not being in paid work, with 41% of the working-age population not working. This is, however, down from 51% a decade ago.
The largest fall in rates of worklessness can be seen in people of 'Mixed' ethnicity.
White people have the lowest rate of being out of work (20%), and Black people have seen the smallest fall (of 6 percentage points) in the last decade.
Worklessness for men and women by country of birth
Worklessness for men and women in London by country of birth (2020 (Q4))
In 2020, of men in London who were born overseas, those from China have the highest rate of worklessness (28%). Of women in London who were born overseas, the highest rate of worklessness is 71%, for those born in Pakistan.
South Africa has the lowest rates of worklessness for women (10%), while the USA has the lowest rate for men (0%). For most countries, the worklessness rate is higher for women than men, although this trend does not hold true for those born in Spain, Ireland or Italy.