decline in in-work poverty prevalence between 2009 and 2012 (falling to 7.6 percent). The in-work poverty rate when excluding WfF and AS is – unsurprisingly – elevated. Moreover, for the period 2007 to 2012, we can see that the greatest cushioning effect of WfF and AS was in 2009. For the period 2012 to 2017, we find a stabilisation in the in-work poverty prevalence (excluding WfF and AS) to around the level observed in 2007. Figure 2. In-work poverty rate over time 16% In-work poverty rate 14% 12% 10% 8% 6% 4% 2007 2008 2009 2010 2011 All income sources 2012 2013 2014 2015 2016 2017 Excluding WfF and AS Source: IDI 2019. Notes: ‘WfF’ is Working for Families tax credit; ‘AS’ is Accommodation Supplement. September quarter utilised for each yearly calculation of household in-work poverty rate. The thresholds for in-work and household poverty are as defined in Section 3. Total sample = 89,187 working households. In-work poverty rate across regions We now turn to the spatial variation of in-work poverty. In order to demonstrate how this varies between regions, we have calculated the distance (in percentage points) between regional in-work poverty rates and the national rate, as shown in Figure 3. Moreover, for further disaggregated findings, we have calculated the respective numbers for territorial authorities (TA) to illustrate the extent of variation within regions. In the Appendix, Figure A 1 depicts the TAs that have in-work poverty rates beyond approximately 2 percentage points of the national mean (7.0 percent), i.e., those with rates above 9 percent or less than 5 percent. In Figure 3, the diamonds display the regional difference with respect to in-work poverty rates when compared to the national average, whereas the bars refer to the minimum and the maximum rate for each region that has multiple TAs. There are five unitary authorities without any further TA; namely, Auckland, Gisborne, Marlborough, Nelson and Tasman. 18 Therefore, there is no sub-regional 18 The sixth territorial authority is the Chatham Islands Council and is not included in the regional decomposition. Page 22

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