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In-work poverty describes the experiences of households where at least one person is in work and the household's income after housing costs is below 60 per cent of the median household income. Housing and other costs, the income provided by the in-work benefits system, as well as low pay, can contribute to in-work poverty. Given the important contribution that low pay makes to in-work poverty, how employers arrive at decisions on pay and their understanding of in-work poverty are important areas of study. The research reported here included interviews with key stakeholders and employers. It focused on understanding employers' approaches, perceptions and experiences in relation to in-work poverty, and looking at the key drivers for employer change, particularly in low-paid sectors, to understand how businesses might – and might be influenced to – make work a better route out of poverty. In this report we set out a 'Framework for Employer Action on In-Work Poverty', which summarises insights from our research on in-work poverty; how employers might be incentivised, influenced and supported to take action; and the stakeholders who need to be involved.

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