Poverty levels in the UK were rising before the onset of recession, according to a new report from the Joseph Rowntree Foundation.

In its annual Monitoring poverty and social exclusion report, produced by the New Policy Institute, it cites 2004-5 as a key turning point when levels of poverty, unemployment and repossessions all started to rise.

The unemployment rate among young adults stopped falling in 2001, with unemployment among 16-24 year olds at its highest rate since the report began.

Poverty levels began rising again in 2004/5, with the number of people in low-income households having risen by 1.3m in the last three years.

Over the last ten years, 25 of the reports 43 indicators show improvement, however. Education levels for 11-16 year olds have made progress and infant mortality has fallen.

Dr Peter Kenway, co-author of the report said: ‘Looking across the whole range of subjects covered in this report, there is much in the government’s record that is positive.

‘But on the core subjects of low income and employment, the picture is bleak. In particular, it is not just a question of ‘recovering from the recession’ since things started going seriously wrong as long ago as 2004.’

The number of children in low income households where at least one adult works has reached 2.1m - the highest number there has ever been.

The Child Poverty Action Group (CPAG) said the report shows that getting a job is not the solution it should be for parents and their children.

'If the government is to even come close to its target of halving child poverty by 2010 then Alistair Darling must use the pre-budget report to boost benefits and tax credits for families in and out of work,' said John Dickie, acting chief executive of CPAG.

by Clare Goff of NewStart