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This study examines the relationship between individual low pay, hours of work, other sources of household income, and household poverty. Using data from the Family Expenditure Survey, the authors examine the extent and risk of low pay in the UK from the mid-1990s to 2000/1. They then go on to examine the household incomes of individual low-paid people, and the contribution made by the various different sources of income to poverty avoidance. The report concludes with a description of the nature and objectives of the key policy instruments being used to address low pay and household poverty, and identifies current issues and future options for policy making in this area. Low pay, household resources and poverty focuses on a key area of policy and is published at a time when the government is committed to increasing employment and reducing poverty. It takes an innovative approach - disaggregating household income in order to examine how different sources of income contribute to poverty 'avoidance' - and is one of the first studies to look in detail at the impact of tax credits.