The number of households where no one is in work has fallen by 38,000 since last year to 3.88 million.
The figures published on Thursday by the Office for National Statistics show that the percentage of households where no adults work was 18.8 per cent, down 0.3 percentage points from 2010.
Employment minister Chris Grayling said that while the fall was welcome, the figures showed Labour had "abandoned" thousands of people during its decade in power.
"While the slight fall in the numbers of workless households and children living in workless households is encouraging, these figures still underline the sheer scale of the challenge we face.
"Over the last decade thousands of people were simply abandoned to a lifetime on benefits, and a staggering 1.84 million children are living in homes where currently no one works. This is why we launched the Work Programme this summer which will give tailor-made support to help people get off benefits and get into work, while our overhaul of the benefits system will ensure that work is always the best option."
The ONS figures also showed there was a rise in the number of homes where no one worked in 2008 when the recession hit. But this trend was reversed between 2010 and 2011 when the number fell.
Those deemed to be workless include the economically inactive as well as the long term unemployed. The main reason given for inactivity is long term illness or disability. The category also includes retirees.
Of the regions in England and countries of the UK, the North East had the highest percentage of workless households. And the number of households in the region where no one had ever worked was 370,000, up 18,000 from the previous year.
Since 1996 the number of workless households has gradually risen from 178,000 to 370,000.