Dan Kennedy

Median equivalised housing costs by family type and age (1999-2015)

Trends in poverty gaps among people in sole parent income support households

This graph compares poverty gaps (the difference between the average incomes of those below the poverty line and the poverty line) for sole parents in income support households with firstly those for all people in income support households, and, secondly, the whole population living below the poverty line. Generally, the poverty gaps for sole parents in income support households are very similar to those in income support households generally, reflecting the fact that the maximum rate of Parenting Payment Single is greater than Newstart and other allowance payments, but less than pension payments. The poverty gap for sole parents in income support households rose from 28% of the poverty line in 1999-00 to 45% in 2011, then declined to 29% in 2015-16.

Trends in poverty among sole parents in income support households

This graph shows the poverty rate among sole parents in income support households in which all children are aged under 15 as a percentage of all households, taking into account housing costs. By only including households with children under the age of 15, it controls for the earnings of teenage and adult children. While the poverty rate among families with a youngest child aged 0-4 years remained stable, rising only marginally from 57% in 2011-12 to 58% in 2012-13, poverty rates rose substantially among families whose youngest child was 5-9 years old, from 47% to 55%; and for those whose youngest child was 10-14 years old, from 51% to 67%. This reflects the impact of the introduction of ‘welfare to work’ policies, and the movement of sole parents from pension payments to lower allowance payments.

Trends in sole parents receiving different payments

This graph shows the trends in the number of sole parents receiving Newstart Allowance and the number of sole parents receiving Parenting Payment Single. The number of sole parents receiving Parenting Payment declined from 425,000 in 2006 to 260,000 in 2015, with the largest reduction being the fall from 320,000 to 250,000 in 2013 when the last remaining sole parents with a youngest child aged 8 or more (those who had received Parenting Payment before 2006) were shifted on to Newstart Allowance or other payments, or else stopped receiving income support payments. The number of sole parents receiving Newstart Allowance rose from close to zero in 2006 to 88,000 in 2015.

Trends in poverty among sole parents

This graph displays the trends in poverty among sole parents, based on the 50% median income poverty line and as a percentage of all people in sole parent families, taking into account housing costs. It shows that sole parents had consistently higher poverty rates than the population-wide level throughout the period. The rate fluctuates in a ragged style, falling from 31% in 1999-00 to 25% in 2002-03, rising to 46% in 2007-08, falling to 26% in 2011-12, then rising again to 30% in 2016-17. This pattern can be partially explained by changes in median household incomes and housing costs for sole parents. The poverty rate among sole parents in income support households (relying primarily on either Parenting Payment or Newstart Allowance) followed a similar ragged pattern but at higher levels. This is due to a large number of sole parents living in income support households (varying between 53% of all sole parents in 1999-00 to 44% in 2015-16). Although these sole parents had lower incomes, their average housing costs rose more rapidly over the period than those of all sole parents.

The sharp rise in poverty among households with sole parents who were unemployed, from 35% in 2013-14 to 59% in 2015-16, is reflective of the transfer of approximately 80,000 unemployed sole parents from Parenting Payment Single to Newstart Allowance and other payments in 2013.

Find out more about why poverty among sole parents is so high, and how this can be addressed, on our causes and solutions page.

Trends in poverty among unemployed people

This graph displays trends in poverty among people without paid work, by family type and payment according to the 50% median income poverty line and as a percentage of all unemployed people, taking into account the cost of housing. It shows that poverty among unemployed people was consistently higher than the population-wide poverty rate from 1999-00 to 2015-16. The poverty rate among unemployed single people was particularly high, at 90% at both the beginning and end of this period, reflecting the level of Newstart and Youth Allowances. Recipients of Newstart Allowance also had elevated poverty rates, albeit lower than those for single unemployed people. The differences between the two groups is family status (Newstart recipients includes those who are partnered) and employment status (approximately 1 in 5 Newstart recipients had part-time employment). There was also a marked increase in poverty amongst Newstart recipients from its already high level of 61% in 1999-00 to 78% in 2015-16. This was caused by the lack of increases in this payment above inflation level, along with growth in average housing costs. A notable feature of trends in poverty among unemployed single parents is the sharp rise from 34% to 59% at the end of the period between 2013-14 and 2015-16.

Trends in poverty gaps among older people

This graph shows that the average poverty gaps (the difference between the average incomes of those below the poverty line and the poverty line) among people aged 65+ in income support households were much lower than those across the whole population between 1999-00 and 2015-16. This is explained by the proximity between pension payments and the poverty line. However, the poverty gap for older couples in income support households rose over the period, from 18% of the after-housing poverty line in 2003-04 to a peak of 29% in 2015-16, probably reflecting increases in housing costs.

Trends in poverty among older people

This graph compares the before housing poverty rates for single older people after housing costs are taken into account, based on the 50% median income poverty line. It shows that until 2015, single people aged 65+ had significantly higher poverty rates than the wider community, whilst poverty rates for couples aged 65+ have been consistently lower. Poverty rates for older people in income support households (mainly Age Pension recipients) were slightly higher than rates for older single and partnered people generally, and followed similar lines.

One of the noticeable features of this graph is the different trend in poverty among older single people and couples between 2005-06 and 2009-10. The poverty rate for older couples was relatively stable, declining from 9.2% in 2005-06 to 8.4% in 2009-10, while poverty rose for single older people from 27% in 2005-06 to 45% in 2008-09, then fell to 18% in 2009-10 – 9 percentage points below the 2005 level. The poverty rate among single older people in income support households also fell overall by 9 percentage points, from 27% in 2005-06 to 18% in 2009-10. This increase in poverty among single older people from 2005-06 to 2007-08 was consistent with strong growth in median household incomes and in their housing costs during that period. The sharper reduction in poverty among older single people from 2007-08 to 2009-10 was consistent with a relatively large increase in the rate of the single pension in 2009, which was not extended to couples.

Another feature of note in this graph is the relative high poverty rate among the minority of older people who rent their housing, which is evident once housing costs are taken into account. The graph shows that poverty rates among older people in public housing rose from 49% in 1999-00 to 80% in 2007-08, then declined to 33% in 2015-16. This reflects the disadvantaged profile of public tenants despite the lower rents for public housing. Poverty rates among private tenants aged 65 and more rose from 53% in 1999-00 to 59% in 2007-08, then fell to 33% in 2015-16. This reflects the higher housing costs for older private tenants compared with older home-owners.

Trends in single pension rate and poverty line

This graph compares the single pension rate with average male earnings and the 50% median income poverty line before housing costs are taken into account. The result of the closeness between these means that large numbers of pension recipients can move from one side of the poverty line to the other.