Link to source: Households Below Average Income
Skills and qualifications have a considerable influence on the risk of poverty, affecting both employment and pay. Those with higher qualifications are more likely to be employed and to earn more than those without. A clear trend shows that having a higher level of qualification reduces the risk of being in poverty.
Those with no or low skills are far more likely to be in poverty than those with higher levels of skills or qualifications. Over one in three of the working-age population who have no qualifications are in poverty. This figure is just over one in ten for those who have a degree-level qualification. The link between qualifications and pay is affected by whether people are in full-time or part-time work. Part-time workers see no pay gains from qualifications until they reach degree-level. Part-time workers with GCSEs or A-levels are not paid more than those with no qualifications.