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THE number of workers living in poverty has reached a record high as the UK’s housing crisis fuels growing insecurity.

Research by the Joseph Rowntree Foundation (JRF) showed 3.8 million workers, or one in eight, are in poverty after an increase since the economy started recovering six years ago.

A total of 7.4 million people, including 2.6 million children, are living in poverty despite being in working households, said the report.

The study said there was growing insecurity underneath the positive economic picture, including rising levels of employment.

The problem is being driven by the housing crisis, especially in the private rented sector, where the numbers living in poverty have doubled to 4.5 million in a decade, said JRF.

More than half of people in poverty in England live in London and southern England, and the capital has the highest poverty rate at 27 per cent - six per cent above the UK average.

The charity has urged the Government to reduce poverty by taking measures including reversing cuts to the Work Allowance, end the freeze on working-age benefits and build more affordable housing.