Using the FRS to measure material deprivation in families with children Stephen McKay University of Birmingham FRS User Group 10 June 2010

Measuring deprivation Indirect, Income-based measures –HBAI, poverty series Direct measures, including indicators of material deprivation –Included on FRS since 2004/05 Recent policy focus => interest in non-financial measures, and the situation of the very poorest?

Change in child deprivation (HBAI)

Deprivation indicators Townsend (1979), survey in –Critique by Piachaud (1981) Breadline Britain surveys, and related studies –1983; 1990; 1999; & in NI –Have this OR dont have & dont want OR dont have and cannot afford it Incorporation as a DWP measure for child poverty (e.g. in Child Poverty Act 2010).

Weeks holiday away from home: trends over time

Selection of questions for FRS 1999 PSE Study provided information on a very wide range of indicators (Gordon et al 2000) Study in 2003 identified a shorter set that could do most (~92%) of the same job –Set of 11 adult/family questions –Set of 10 child-focused questions Both sets included in DWP material deprivation measure –Question on arrears on various commitments Not part of the DWP measure Questions recently being revised (5 year time horizon)

DWP approach Merging of adult and child data into a single index Summed according to prevalence (more weight to items that more people have) rather than actual number lacked –Weights now change each year, originally fixed at baseline year A threshold set as indicating deprivation (score of 25 on a scale)

FRS data structure – deprivation questions are at benunit level Household [SERNUM] Family [SERNUM. BENUNIT] Adult [SERNUM. BENUNIT, PERSON] Child [SERNUM. BENUNIT, PERSON] Job [SERNUM. BENUNIT, PERSON, JOBTYPE] So, results can be for households, families or individuals (or adults or children). Many other files for pensions, housing: N=26 files. +

Number of items cannot afford

Adults deprived before children (number of family units) Children not deprived Children lacking 2+ things Adults not deprived 4.4m0.14m Adults lacking 3+ things 1.46m1.36m

Deepening definition of material deprivation among families – lone parenthood

Deepening definition of material deprivation among families – DDA disability

Deepening deprivation – number of children

Other significant differences High risks of deprivatoin –Workless or unemployed –Child with a health problem (maybe partly reflecting larger families) –Living in London, West Midlands, North-West –Not married Strong link to arrears on household commitments

Logits on most deprived – selected coefficients (odds ratios), all p<0.01 Worst 30%Worst 20%Worst 10% 4+ child (cf 2) Workless (cf FT emp) Unemployed Pa, Ba DDA Pseudo-R

Some conclusions Excellent source for tracking material deprivation among families –Time series since , other studies tend to be ad hoc, or fewer indicators (BHPS) –Limited exploitation of child vs adult measures, and of the arrears indicators –Good starting sample sizes Possible to focus in on the most deprived, or look at a wider group, and to combine with income