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Income deprivation in Wales

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What does the data from 2016-17 financial year tell us?

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Income deprivation in Wales

  1. 1. Income Deprivation in Wales What does the data from the 2016-17 financial year tell us?
  2. 2. There are 1,909 small areas in Wales with a population of around 1,600. Income deprived Not income deprived On average, 16% of the population in these small areas were income deprived.
  3. 3. This means they were: • claiming an income related benefit, • a supported asylum seeker or, • a dependent child of someone who is classed as income deprived. Income related benefits include: Income Support, Jobseeker's Allowance, Universal Credit (with earnings below a threshold), Pension Credit, Income Based Employment and Support Allowance, and Working Tax Credits or Child Tax Credits - as long as their income is less than 60 per cent of the median income for Wales (before housing costs).
  4. 4. However, income deprivation rates ranged from: 1% in Cathays 11 to 63% in Rhyl West 2 Lowest rate Highest rate Median rate = 14%
  5. 5. 1% in Cathays 11 to 63% in Rhyl West 2 Lowest rate Highest rate Median rate = 14% The low rates often seen in the Cathays area of Cardiff are affected by the high number of University students in these areas who are unlikely to claim income related benefits. The small areas around Rhyl West 2 also have high income deprivation rates: Rhyl West 1 has the 4th highest and Rhyl West 3 the 10th highest.
  6. 6. Income deprivation bands: % of people in income deprivation Over a third of the 1,909 small areas have income deprivation rates greater than 10% but less than 20% 656 712 362 141 36 2 0< x <= 10 10< x <= 20 20< x <= 30 30< x <= 40 40< x < = 50 x > 50 In two of the small areas the majority of the population were in income deprivation. The number of small areas in each income deprivation band
  7. 7. The 10 small areas with the highest rates of income deprivation Name of small area (LSOA) % of population in income deprivation Rhyl West 2 63 Ely 5 51 Trowbridge 8 50 Rhyl West 1 49 St. James 3 48 Ely 2 48 Queensway 1 47 Tylorstown 1 47 Glyn (Conwy) 2 46 Rhyl West 3 46
  8. 8. However, not all income deprived people live in areas where income deprivation is high - there are income deprived people in all the small areas In fact, 27% of those in income deprivation live in the least income deprived half of the small areas in Wales. Least income deprived half of the small areas Most income deprived half of the small areas For every 100 people living in income deprivation, 27 of them live in the least income deprived half of the small areas.
  9. 9. Time and money spent on childcare likely to be why 0 to 4 year olds most at risk of living in income deprivation: Age group % in income deprivation 0 to 4 27% 5 to 9 24% 10 to 15 23% 16 to 18 21% 19 to 24 12% 25 to 34 14% 35 to 44 13% 45 to 54 12% 55 to 64 11% 65 to 74 14% 75 and over 22% People caring for young children may have lower earnings and/or increased childcare costs, and therefore be more likely to claim benefits or tax credits. This may be why young children not yet in full-time school were the age group most likely to be living in income deprivation. 0% 50% 100% Children are living in income deprivation if they are the dependent child of an adult classed income deprived
  10. 10. Would you like more information? The information contained here comes from the annual update to a selection of indicators that feed into the Welsh Index of Multiple Deprivation (WIMD). You can find more information about income deprivation and all the other indicators included in WIMD by visiting our webpages: The WIMD webpage The WIMD indicator webpage WIMD on StatsWales Or you can email our team: stats.inclusion@gov.wales

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