Commentary on provisions of Act Section 4: Children living in low-income households
This section places a duty on the Secretary of State to publish data annually, but not to report to Parliament, on the percentage of children living in four low-income households. The four low-income households are those commonly referred to as in relative low-income, combined low-income and material deprivation, absolute low-income, and persistent low-income. These terms are defined in the section as the percentage of children in the United Kingdom:
who live in households whose equivalised net income for the relevant financial year is less than 60% of median equivalised net household income for that financial year (relative low-income);
who live in households whose equivalised net income for the relevant financial year is less than 70% of median equivalised net household income for that financial year, and who experience material deprivation (combined low-income and material deprivation);
who live in households whose equivalised net income for the relevant financial year is less than 60% of median equivalised net household income for the financial year beginning 1 April 2010, adjusted to take account of changes in the value of money since that financial year (absolute low-income);
who live in households whose equivalised net income has been less than 60% of median equivalised net household income in at least 3 of the last 4 survey periods (persistent low-income).
	The data on children in low-income households must be published by 31 March 2017 and thereafter annually. The data published must relate to the most recent financial year, for which data is available.
	The approach taken regarding the terms used will be set out in the relevant publication.
	The section also provides that the publication itself may set out how and when the baseline year of 1 April 2010 for the absolute low-income data will be adjusted. This may eventually be necessary to take account of changes to the value of money and to prevent this data becoming meaningless over time.