Relative income poverty
People living in relative income poverty are those who live in a household where the total household income from all sources is less than 60% of the average UK household income (as given by the median).
For regions and countries of the UK, the latest data point published is for the 3-year period between financial years 2021 to 2022 and 2023 to 2024.
Between 2021 to 2022 and 2023 to 2024, 22% of all people in Wales were living in relative income poverty (after housing costs were paid). Children are more likely to be in relative income poverty, at 31% in the latest 3-year period, than working-age adults (21%) and pensioners (16%).
The percentage of people living in relative income poverty has been relatively stable in Wales for over 18 years, with children more likely to be in relative income poverty than the population overall. Although rates of people living in relative income poverty in Wales increased for children and decreased for pensioners in the most recent period, none of the changes were statistically significant.
Figure 1.7: percentage of each age group in Wales living in relative income poverty (after housing costs), 3-financial-year averages [Note 1]
Description of figure 1.7: a line chart showing people in Wales living in relative income poverty (after housing costs were paid) from 1997 onwards. The percentage of people living in relative income poverty has been relatively stable in Wales for over 18 years, with children more likely to be in relative income poverty than the population overall.
Source: Welsh Government Analysis of the DWP's Households below average income dataset, based on the Family Resource Survey
[Note 1] Estimates for periods which span 2020 to 2021 do not include the data collected during 2020 to 2021 in calculations. For those 3 periods , estimates formerly calculated as 3 year rolling averages are based on 2 year rolling averages that omit the 2020 to 2021 survey data. 2020 to 2021 estimates are unreliable as they are based on data collected during the first year of the coronavirus (COVID-19) pandemic, when lockdown rules severely disrupted the data collection.
A person is considered to be in persistent poverty if they are in relative income poverty in at least 3 out of 4 consecutive years. Data from the Understanding Society survey shows that an individual in Wales had a 12% likelihood of being in persistent poverty between 2019 and 2023 (after housing costs were paid). A child in Wales had a higher likelihood of being in persistent poverty at 16%.
Material deprivation
Material deprivation is a measure of living standards, and a person is defined to be living in material deprivation if they are not able to access a certain number of goods and services.
Data on material deprivation is sourced from the National Survey for Wales. The continuation of COVID-19 pandemic restrictions into financial year 2021 to 2022 affected the measurement of material deprivation. The restrictions that remained in place affected people’s access to some social opportunities or services, regardless of deprivation or financial constraint.
Fieldwork issues for the National Survey for Wales in 2024 to 2025 have resulted in smaller sample sizes than in previous years and some differences in the sample composition.. This may have an impact on the estimates of material deprivation for this year. See the National Survey for Wales quality report for more information.
In the years prior to the pandemic, the percentage of working-age adults in material deprivation reduced from 19% in 2017 to 2018 to 16% in 2019 to 2020. There was also a decrease in material deprivation among pensioners (from 7% to 4% in the period).
More recently, between 2021 to 2022 and 2024 to 2025, levels of material deprivation for working age adults rose up to 19% in 2022 to 2023 but then fell back to 14% in 2024 to 2025. Levels of material deprivation in pensioners has remained around 4% to5% since 2018 to 2019.
Earlier data from 2022 to 2023, indicated that 25% of people who had children in their household were in material deprivation, compared with 11% of people in child-free households. However, a lower proportion of parents had children who were experiencing material deprivation themselves (9%). This was an increase from when last measured in 2019 to 2020, when 6% of parents had children who were experiencing material deprivation.
Figure 1.8: percentage of people in material deprivation (in Wales, financial years 2016-17 to 2024-25 [Note 1] [Note 2] [Note 3] [Note 4]
Description of figure 1.80: a line graph showing that the proportion of working-age adults and pensioners who were materially deprived both fell prior to the pandemic whilst the trend for children was relatively stable. The proportion for each of these groups rose in 2022 to 2023 before falling to around 2021 to 2022 levels in 2024 to 2025 (where data is available).
Source: National Survey for Wales
[Note 1] Material deprivation data was not collected for the 2020 to 2021 survey year.
[Note 2] From 2021 to 2022, material deprivation statistics are not strictly comparable with the pre-pandemic period. The National Survey transitioned from a face-to-face to telephone-based survey, which may have influenced respondents answering of the material deprivation questions.
[Note 3] Fieldwork issues for the National Survey for Wales in 2024 to 2025 have resulted in smaller sample sizes than in previous years and some differences in the sample composition. This may have an impact on the estimates of material deprivation for this year [Note 4] The percentage of children in material deprivation is not available for the 2024 to 2025 survey year.
Income spent on housing costs
The national indicator on the percentage of households spending 30% or more of income on housing costs is based on data from the DWP Family Resources Survey.
For the latest period (financial year 2021 to 2022 to financial year 2023 to 2024), 15% of households spent 30% or more of their income on housing costs, but this varies by housing tenure.
3% of households who own their own home outright and 8% of those who own a home with a mortgage spend 30% or more of their income on housing costs. Percentages are higher for other tenures, with 37% of those in private rented and 36% of those in social rented housing spending 30% or more of their income on housing costs.
Whilst it may appear that the percentage of households spending 30% or more of their income on housing costs has fallen recently (figures for the period 2011 to 2012 to 2013 to 2014 were around 19%) it is important to note that these figures are based on results from the Family Resources Survey (FRS) which has a small sample for Wales, and it is unlikely that year-on-year changes are statistically significant. Therefore, we advise caution when looking at changes over time. However, note that during the most recent periods the income element of the indicator includes increases in state support (for example fuel support payments, Cost of Living support scheme payments) as well as increased interest payments on savings as a result of higher interest rates. In addition, many households in the period on fixed rate mortgages may not yet have been impacted by increases seen in the mortgage interest rates following increases in the Bank of England base rate from autumn 2022 if their fixed rate mortgage deals hadn’t yet come to an end.
Note that this indicator does not include household energy costs, which have been rising in recent years, or non-housing costs which households face (e.g. food) which will have had a wider impact on households.
Fuel poverty
Household energy costs have been volatile since early 2022 when energy prices rose sharply, reaching a peak by the end of 2022. They have fallen since but remain well above prices from before 2022.
In financial year 2024 to 2025, the average household energy bill (based on standard energy consumption) was estimated to be £1,850, which is 37% higher than in 2021 to 2022. Such price increases have impacted the number of households estimated to be in fuel poverty, as they are likely to be larger increases than changes to income.
A household is regarded as being in fuel poverty if they are unable to keep their home warm at a reasonable cost. In Wales, this is measured as any household that would have to spend more than 10% of their income on maintaining a satisfactory heating regime. Any household having to spend more than 20% is defined as being in severe fuel poverty.
Latest modelled estimates for October 2024 indicate that 340,000 households in Wales (1 in 4 households) were estimated to be in fuel poverty. This is up from around 1 in 7 households in October 2021. 63,000 households in Wales (1 in 20 households) were estimated to be in severe fuel poverty in 2024.