POVERTY has increased for children and pensioners over the last five years, a new study finds today.

The Joseph Rowntree Foundation (JRF) report says that — despite rising levels of employment — in-work poverty has gone up due to inadequate pay and hours for workers.

Just over half of people in poverty are in a working family compared to 39 per cent 20 years ago, according to the research.

The report says that 14 million people were living in poverty including four million children and two million pensioners, up by 400,000 and 300,000 respectively over the past five years.

TUC general secretary Frances O’Grady said: “The government must crack down on business models based on poverty pay and insecure jobs.

“Zero-hours contracts should be banned and the minimum wage must go up to at least £10 an hour right away.”

Online: Trussell Trust chief executive Emma Revie said: “The findings from JRF’s report today could not be clearer — for too many people it’s becoming harder and harder to keep their heads above water.”

A Department for Work and Pensions spokesman claimed that wages are outstripping inflation and absolute poverty is lower than in 2010.