London and the West Midlands displace North-East England and Northern Ireland as the regions of the UK with the highest rates of poverty when we take account of differences in the cost of living around the country, according to Poverty and Inequality in the UK 2008, the annual analysis by IFS researchers of yesterday's Households Below Average Incomes data from the Department for Work and Pensions.

The annual Households Below Average Income report from the Department for Work and Pensions describes the pattern of household incomes after deducting direct taxes and adding tax credit and benefit payments, and adjusted for family size. It compares incomes both before housing costs (BHC) and after housing costs (AHC). A separate press release from the IFS dated 10 June 2008 detailed the main developments in the latest year, including low income growth and rises in poverty and inequality.

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