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27 percent of London's population below the poverty line
More than a quarter of the population in London now lives below the poverty line. At the same time, thousands of people live on the streets, a new British report shows.

It is the organization New Policy Institute that has released the report on the economic situation in Britain's capital, London.

The figures, based on statistics from the British authorities, are very scary.

As many as 27 percent, or 2.3 million, of the city's population live below the poverty line when they have paid their housing costs.

The corresponding figure for the rest of England is 21 percent.

One explanation is that the British labor market has grown with low-paid jobs while housing costs have grown ever higher. The low wages are thus consumed when people pay their rent.

The report also shows that the number of homeless people sleeping on the streets is increasing dramatically. That figure has risen by 200 percent to over 8,000 homeless people in London only the last decade, of which one third are immigrants from Eastern and Central Europe.