The Children in Low-Income Families Local Measure is the proportion of children living in families either:
in receipt of out-of-work benefits; or
in receipt of tax credits with a reported income which is less than 60 per cent of national median income.
Administrative data sources on benefits and tax credits from the Department for Work and Pensions (DWP) and Her Majesty’s Revenue and Customs (HMRC) are used in the calculation of the Children in Low-Income Families Local Measure.
They measure the proportion on children in low-income families at a certain point in the year (typically the 31 August).
More details on the production and use of these statistics can be found in the HMRC commentary