‘Very deep poverty’ in Britain hits worst level in 30 years, report says

A recent report by the Joseph Rowntree Foundation reveals that "very deep poverty" in Britain has reached a 30-year high, affecting approximately 6.8 million people. This is defined as households with an after-housing-costs income below 40% of the UK median. While the overall poverty rate has slightly decreased since the mid-1990s, the proportion of people in "very deep poverty" has increased and now accounts for almost half of the total poverty population. Child poverty has also risen for the third consecutive year, with 4.5 million children affected. In response, Finance Minister Rachel Reeves plans to scrap a two-child limit on welfare payments in April, a policy introduced in 2017 that restricted benefits for larger low-income families. The change aims to reduce child poverty by increasing benefits.

A recent analysis by the Joseph Rowntree Foundation (JRF) reveals a record number of approximately 6.8 million people in the UK are living in "very deep poverty" as of 2023-24. This means their household incomes are significantly below the poverty line, failing to cover essential costs like food, energy, and clothing. While overall poverty rates have remained relatively stable, the depth of poverty has worsened, with those in very deep poverty experiencing an average income 59% below the poverty threshold. The JRF also notes that about 3.8 million people experienced destitution, an even more extreme form of poverty. The JRF criticized the lack of progress in reducing poverty between 2010-2024 and welcomed Labour's child poverty strategy but urged for a broader approach to address hardship beyond child poverty.