The poverty rate for Britain’s minority ethnic groups stands at 40%, double the 20% found amongst white British people, according to new research published today by the Joseph Rowntree Foundation (JRF).  Minority ethnic groups are also being overlooked for jobs and are being paid lower wages, despite improvements in education and qualifications.

The research highlights the differences between minority ethnic groups with 65% of Bangladeshis living in poverty compared to 55% of Pakistanis, 45% of Black Africans and 30% of Indians and Black Caribbeans. Over half of Bangladeshi, Pakistani and Black African children in the UK are growing up in poverty with a staggering 70% of Bangladeshi children growing up poor.

The research shows that people from minority ethnic groups who have higher educational achievements do not receive the same rewards as those from white British backgrounds with similar qualifications. A wide range of factors are shown to affect different groups and the research highlights how the Government needs to consider and implement more targeted policies.

The results of the project are unsurprising when one considers that there is a 16% employment gap between ethnic minorities and the population as a whole. Educational qualifications, employment sector, labour market experience, discrimination, location, disability, ill health and family form and structure were all found to play a role in different poverty rates.

When the contribution of individual characteristics (such as fewer qualifications) to employment disadvantage was analysed, there were some unexplained outcomes. For example, Black Africans were found to have very high rates of higher education qualifications, but also suffer from high rates of unemployment and poor occupational outcomes. This ‘ethnic penalty’ includes the effects of discrimination.

JRF Director Julia Unwin said: “Although the past decade has seen some improvements, there are still some very serious problems which remain unsolved. This research shows how policies need to address the different situation of each group and be followed through on a practical level. We need an urgent rethink from Government and employers so that minority ethnic groups do not miss out on opportunities in the workplace and higher educational attainment is properly recognised.”

Jim Murphy, minister for employment and welfare reform, said: “As the Joseph Rowntree Foundation has acknowledged, the lives of ethnic minority groups have improved over the last decade. We have helped an additional quarter of a million people from ethnic minorities move into work over the last few years and the employment rate has risen to 60% in the last three years. But we are aware that more needs to be done.”

Click here for further information on the findings.