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Individuals are said to be in relative low income if they live in a household with an equivalised income below a percentage of contemporary median income before housing costs (BHC) or after housing costs (AHC).

Relative low-income statistics fall if income growth at the lower end of the income distribution is greater than overall income growth.

Source: The latest Households Below Average Income (HBAI) report produced by The Department for Work and Pensions (DWP).