London, United Kingdom. Poverty in Britain has deepened, with about 6.8 million people living in “very deep poverty”, the highest level in three decades, according to a report released on Tuesday.
Definition and scale of “very deep poverty”
The report defines “very deep poverty” as households with an after-housing-costs income below 40% of the UK median, which it said amounts to around 16,400 pounds a year for a couple with two young children.
Overall poverty rate and shift within poverty levels
The Joseph Rowntree Foundation (JRF) said the overall UK poverty rate fell slightly from 24% in 1994/95 to 21% in 2023/24. Over the same period, “very deep poverty” increased from 8% to 10% and now accounts for almost half of everyone in poverty.
Child poverty trends
The report said child poverty has climbed to 4.5 million children and has risen for the third year in a row. It added that children remain disproportionately affected by poverty, alongside people with disabilities.
Welfare policy change and response
The report follows Finance Minister Rachel Reeves’ November decision to scrap a two-child limit on welfare payments in April, a move that officials estimate will cost 3.1 billion pounds and is aimed at reducing child poverty by increasing benefits for families.
The cap, introduced by the Conservative government in 2017, has meant many low-income families do not receive further benefits when they have a third child or subsequent children.
JRF welcomed the removal of the two-child limit but said it “cannot be the only step” and warned that without further action in the government’s strategy to end child poverty, progress is likely to stall.
Groups most affected
The report said certain minority groups, including Bangladeshi and Pakistani communities in Britain, experience particularly high poverty rates.
Reactions and economic context
John Bird, founder of the anti-poverty charity Big Issue, described the findings as “bad news for society”.
Britain’s economy grew by a stronger-than-expected 0.3% in November, its strongest monthly rise since June. Inflation rose more than forecast to 3.4% in December but is expected to slow sharply soon.
What further measures do you think should be included in the government’s strategy to end child poverty?