Money Wellness
upside down dead piggy bank
category iconcost of living
calendar icon21 Mar 2024

Number of children living in poverty rises to 4.33 million as election year looms

Recent figures show that there were an estimated 4.33 million children in households in relative poverty after housing costs in the last 12 months.

This is the highest figure since these records began in 2002/03. Last year, it was at 4.22 million, while in 2020 it stood at 4.28 million in 2020- the last highest figure.

A household in the UK is thought to be in relative poverty if it is below 60% of the average income after housing costs.

Meghan Meek-O’Connor, senior child poverty policy adviser at Save the Children UK, said: “Today 4.3 million children are being failed. It is an outrage that 100,000 more children are in poverty – they are being forgotten. These shocking figures should be an urgent wake-up call to all of us, especially the UK Government. We cannot go on like this. There is no reason children should be going without food, heating, toys, or beds.”

Government has let down children

Many campaigners have spoken at about the appalling recent figures.

Alison Garnham, chief executive of Child Poverty Action Group (CPAG), said: “In a general election year, nothing should be more important to our political leaders than making things better for the country’s poorest kids.

“But child poverty has reached a record high, with 4.3 million kids now facing cold homes and empty tummies.”

Barnardo’s chief executive Lynn Perry said the statistics show “the Government has let down children. “Children can’t be happy and healthy if they are going to bed in a cold home, on an empty stomach.”

Meghan Meek-O Connor commented, “Families need an adequate social security system that keeps children out of poverty, and provides them with a basic level of safety and security.”

These and other campaigning organisations are calling on the government to focus on reducing child poverty. They call for the two-child limit on benefit payments to be scrapped, and for the introduction of an essentials guarantee to make sure households can afford food and to pay their bills.

600,000 living in absolute poverty

Absolute poverty is measured by how many people this year can’t afford a standard set of living. If a person’s income is 40% below an average income in the year ending march 2011, they’re classed as living in absolute poverty.

Today’s figures show a rise for the second year in a row of absolute poverty with 600,000 more people, half of them children, living in absolute poverty.

Work and Pensions Secretary Mel Stride said the Government had “stepped in with the biggest cost-of-living package in Europe, worth an average of £3,800 per household, which has prevented 1.3 million people from falling into poverty in 2022/23”.

He also pointed to the uprating of benefits and pensions from April and the extension of the Household Support Fund.

But Joseph Rowntree Foundation (JRF) chief analyst Peter Matejic commented: “The annual poverty figures published today confirm that the Government failed to protect the most vulnerable from the cost-of-living crisis.

“(The statistics show) just how far away our social security system is from adequately supporting people who have fallen on hard times”.

He calls on all political parties to treat this rise in poverty with the seriousness it deserves in an election year, by setting our their plans to tackle it.

Essential costs help

If you need help, you’re not alone. 49% of the people who contact us have a negative gross disposable income – they have more going out than coming in – each month. A further 11% have less than £100 left each month after all their bills are paid.

Budgeting

Creating a budget can help you gain control over your finances. It allows you to prioritise your spending, track how you’re doing and realise when you need to make changes.

You can use our free budgeting tool as a starting point to see what you’re spending and if there’s any areas where you can make savings.

Check benefits and financial support you can get

£19 billion worth of benefits goes unclaimed each year. You could be missing out on extra money that you’re entitled to without evening knowing it.
Use our free benefits calculator to see if there’s more support available than you’re currently getting.

Household Support Fund

Your local council could help you with money or vouchers towards your energy bills, food or clothing and electrical goods. What you get will depend on how your council has chosen to spend its allocation of the household support fund. Contact your local council for more details about what support they have available.

You should also speak to your local council to see if you’re entitled to a reduction in your council tax payments. You bill could be reduced by up to 100% but what you get will again depend on your local council scheme.

Speak to your suppliers

If you’re on a low income or claiming certain benefits, such as universal credit or pension credit, you might be eligible for social tariffs on your energy, broadband, mobile phone, and water bills.

Social tariffs – also known as basic tariffs – offer the same services at lower/discounted prices. Each provider has its own criteria so it’s best to contact them directly to see what you could save but it’s likely to be £100’s.

If you’re in debt to your providers, speak to them. They will work with you to find a solution that works for both of you. Energy providers even have hardship grants available where they can write off debts, top up meters or move you on to lower tariffs.

Food banks

If you’re struggling to afford to fill your cupboards, a food bank might be able to provide emergency help. There are at least 1,172 independent food banks operating across the UK. To access help from them you’ll need a referral from a frontline professional such as a health visitor, social work, doctor, your child’s school, or Citizen’s Advice. Find your nearest one at Food Aid Network or Trussell Trust.

Get debt advice

If your outgoings regularly exceed your income, you should seek free debt advice. We can work with you to find the right solution to get you out of debt.

 

Avatar of Lydia Bell-Jones

Lydia Bell-Jones

With a background in banking, Lydia has been writing professionally for over five years. She is passionate about helping people improve their personal finances and has a particular interest in the connection between money and mental health.

Related posts

cost of living

19 Dec 2024

Interest rates held at 4.75%

Find out what it means for you

cost of living

18 Dec 2024

Inflation continues to rise

Inflation hits 2.6% for November

cost of living

16 Dec 2024

Iceland defrosts its loans scheme in time for Christmas

Find out how to apply for interest-free short term help