Britain's poorest are getting poorer, campaigners have warned. The Joseph Rowntree Foundation (JRF) says poverty levels will remain stuck at record highs after April, despite the government's decision to lift the two-child benefit limit. The social change organisation's analysis reveals that nearly half of all people in poverty now live far below the poverty line – the highest level since records began in 1994/95.
The scale of deprivation is stark. Some 6.8 million people are living in very deep poverty, with incomes less than 40 percent of the UK average after housing costs, across the 12 months to March 2024. Overall, 14.2 million people – more than one in five – live in poverty. The average person in poverty is now living 29 percent below the poverty line, compared with 23 percent in the mid-1990s.
The government has confirmed it will lift the two-child benefit cap in its autumn budget, a move expected to bring around 400,000 fewer children into poverty by April. Combined with wider measures in the government's child poverty strategy published in December, officials say the plan will lift 550,000 children out of poverty by 2029/30 – the biggest reduction in a single parliament since records began. Yet Office for Budget Responsibility projections suggest the headline poverty rate will remain broadly unchanged, at 21.3 percent in 2026 and 21.1 percent in 2029.
Record Deep Poverty
Peter Matejic, JRF's chief analyst, said: «Poverty in the UK is still not just widespread, it is deeper and more damaging than at any point in the last 30 years.» He warned: «When nearly half of the people in poverty are living far below the poverty line, that is a warning sign that the welfare system is failing to protect people from harm.»
Around two-thirds of working-age adults in poverty – 5.4 million people – live in households where someone is in work. Matejic said: «The Government has promised to reduce child poverty this Parliament, and this analysis is the starting line of that commitment.» But he cautioned: «JRF analysis shows that, without further changes, relative poverty levels remain stuck at a high level after April 2026.»
Calls for Action
The JRF is calling for an "essentials guarantee" within Universal Credit to ensure a protected minimum income. The foundation also wants the government to permanently link local housing allowance to local rents and introduce greater labour market protections for workers, including the self-employed, during illness or caregiving.
Matejic said: «There can be no national renewal if deep poverty remains close to record levels.» He added: «People want to feel like the country is turning a corner. That means taking action on record levels of deep poverty so everyone can afford the essentials.»
A government spokesperson said: «We understand that too many families are struggling, and we are taking decisive action to address poverty by boosting the national living wage by £900, cutting energy bills by £150 from April, and launching a £1 billion crisis and resilience fund to help households stay afloat.» The spokesperson added: «As this report acknowledges, scrapping the two-child limit alongside our wider strategy will lift 550,000 children out of poverty by 2030 – the biggest reduction in a single parliament since records began.»
Steve Darling, Liberal Democrat work and pensions spokesperson, called the report a «devastating indictment of the previous Conservative Government's neglect for the most vulnerable in our society». He said: «We need immediate action on the cost of living from this Government to bring down energy bills, build more affordable homes, and end this misery once and for all.»
Note: This article was created with Artificial Intelligence (AI).