A new study conducted by the Joseph Rowntree Foundation (JRF), a development charity, found that more and more working families in the UK are living in poverty despite being employed, according to a report by The Independent.

The JRF report shows that living standards in the UK has been declining with average income falling by 8 percent since 2008. The poverty figure has been increasing in the UK with more than 500,000 working families living below the poverty line. The report shows that 6.7 million families with employed adults meet what it calls the "worrying criteria", which is higher when compared to the combined 6.3 million retirees and unemployed families.

According to the report, working age adults without dependent children constitute the largest group living below the poverty line, that is, 4.7 million poor people. The report also shows that half of the adults of working families are getting below the country's living wage. Job insecurity has been increasing since in which one in six members of the workforce have claimed Jobseekers' Allowance during the last two years.

One reason for working families falling below the poverty line is attributed to benefit cuts, which include bedroom tax and council tax benefit. Because of this, there are 400,000 families have been suffering since, according to the JRF.

However, the JRF also found some positive developments. The charity found improvements in the labor market, which include decline in unemployment and underemployment and the improvements in education and health outcomes of the population.

"Recent economic improvements do not outweigh the damage inflicted during the downturn to the incomes of the poorest people across the country." Julia Unwin, JRF's chief executive told The Independent. "Our report demonstrates there has been progress in some areas and the tide has turned on employment, but this not been matched by improvements in wages."

Over the last two years, falling incomes has had a negative impact on the gains the UK economy had in the previous decade, the JRF told The Independent.

Families living in poverty are those whose income fall below 60 percent of median income for that year.