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May 2006
Article
Alternative measure of poverty rises under Labour

When household spending, rather than income, is used to measure living standards, relative poverty in Britain has risen, rather than fallen, since 1997, finds a new study by researchers from the Institute for Fiscal Studies.

The study, funded by the Joseph Rowntree Foundation, suggests that a useful alternative definition of relative poverty would be living in a household which spends less than 60% of the median-spending household, rather than the measure most used by the government, which is to be living in a household whose income is less than 60% of the median-income household.

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