Almost a quarter of UK population living in poverty

Deprivation levels have reached a record high, with more ore than one in three children and a quarter of adults in the UK  living in poverty, a Guardian exclusive reports.

5.2 million children in poverty

A study by the Social Metrics Commission (SMC) shows that nearly a quarter of the UK population – about 16 million people – are living in poverty. The report found:

• More than 5.2 million children are now living in poverty.
• Since 2019, the cost-of-living crisis has pushed 2 million more people into severe hardship.
• An extra 260,000 children have been affected since the pandemic.
• The biggest rise in poverty levels is due to children.

The impact on families

The report also looked at how family dynamics are linked to poverty levels.

Over half of the children living in poverty belong to families with three or more children.

There have been calls for the two-child cap on benefits to be scrapped, but Prime Minister Keir Starmer says this isn’t currently possible.

The two-child cap means parents can only claim child tax credit or universal credit for a maximum of two kids per household. It currently impacts about 1.5 million children.

If it were scrapped, 250,000 youngsters would be lifted out of poverty, according to the End Child Poverty Coalition.

New definitions of poverty

What makes this research different from previous studies is that it used a different understanding of poverty. Instead of only looking at a family’s income, researchers considered inescapable costs, like:

• childcare
• disability-related expenses
• rent and mortgages
• liquid assets that can be quickly converted to cash

Under the previous definition, 18% of the UK population was classified as living in absolute poverty. But using the new metrics, the number of children living in poverty is 1.6 million higher than reported before.

A closer look at vulnerable groups

The report also highlights that 1.8 million more disabled people have been living in poverty since the pandemic, bringing the total to 8.7 million.

Over half of those living in severe hardship live in a family that has a disabled person.

Poverty among working families

Nearly one in ten people living in poverty are part of a household with full-time employment.

This suggests that even stable jobs don’t guarantee financial security. Almost 5 million people living in poverty are from households in full- or part-time work.

Helen Barnard, director of policy at Trussell, highlighted the urgent need for support. Trussell runs over 1,400 food banks across the UK and has seen  rising demand.

In the year leading up to March 2024, they distributed more than 3m  emergency food parcels, nearly double the number from five years prior. Over 1m of these parcels went to children.

What is the government doing?

Although they haven’t scrapped the two-child limit on benefits, the government is trying to tackle the crisis by:

• extending the household support fund
• increasing the national living wage
• uprating benefits
• introducing a fair repayment rate on universal credit deductions

We’re here for you

In the first half of 2024, we directed over 21,000 people to food banks – more than 50% more than the same time last year. Find out how a food bank can help you by reading our guide.

If you’re finding it hard to feed your family, it may be time to ask for help.

We can help you with everything from budgeting to making sure you’re getting all the benefits you’re entitled to, as well as advising you on debt solutions (some are free, for others there’s a fee).

All of our debt advice is free and impartial, and you can access it online 24/7 or over the phone during our office hours – 0161 518 8285.