Rising Poverty Figures in the UK
The number of people living in relative poverty in the UK increased by 500,000 in the year leading up to March 2025, according to new government data.
Currently, 13.4 million individuals are living in relative poverty, which includes four million children. The number of pensioners experiencing relative poverty rose from 1.49 million to 1.69 million.
Relative poverty is defined as living in households with income below 60% of the median average income of the population.
Work and Pensions Minister Diana Johnson described the poverty levels as
"wholly unacceptable"and stated that the government is implementing
"robust action to change the course".
Despite the increase in absolute numbers, the proportion of people in poverty relative to the overall population rose only slightly from 19% to 20% between 2023/24 and 2024/25, the report indicates.
Peter Matejic, chief analyst at the Joseph Rowntree Foundation, commented:
"The latest statistics show overall poverty rose slightly and there was little change in child poverty in the first year of the Labour government."
He added that the foundation anticipates a reduction in child poverty following the government's decision to remove the two-child benefit limit starting April 2026, but emphasized:
"The bottom line is that far too many families are still in poverty."
The Institute for Fiscal Studies noted that the change in numbers was not
"statistically significant".
Prime Minister Sir Keir Starmer has declared that reducing child poverty by the 2029 election is a top priority for his administration.
Revised Poverty Figures
These statistics are the first produced under a new methodology for estimating poverty levels, which the government asserts is more accurate.
This revision indicates that previous governments have likely overestimated poverty levels in recent years due to under-reporting of income by participants in the Family Resources Survey.
The new method incorporates precise data on benefits received by individuals.
As a result, the number of children officially classified as living in relative poverty was 400,000 lower than previously estimated last year.
Similarly, the total number of individuals living in poverty has been revised downward for previous years. For example, the figure for 2023/24 was adjusted from 14.25 million to 12.93 million.
Ben Gregg, head of welfare at the Centre for Social Justice think tank, criticized the relative low-income measure, stating:
"A 2% fall in muddled estimates means nothing for those who actually lack life's basic necessities."
He further highlighted:
"There are 1.5 million children growing up in workless households today, who are four times more likely to lack the basics of childhood than their peers.
Rather than trying to move people from just below to just above an arbitrary line, we must return to a relentless focus on work as the most sustainable route out of poverty."
The revision is not expected to significantly affect government projections that policies, including lifting the two-child benefit cap, could reduce child poverty by 500,000 by 2030.
Labour committed to removing the cap—which restricts parents to claiming universal credit or tax credits for only their first two children—after pressure from its backbenchers.
The policy, effective from April, is projected to cost £3 billion annually by 2029-30.
Some opposition parties have criticized the policy. Conservative leader Kemi Badenoch argued that benefit recipients
"should have to make the same choices on having children as everyone else."
Reform UK initially supported lifting the cap to encourage childbearing but later reversed its stance.
Chancellor Rachel Reeves defended the policy, stating the cap
"pushes kids into poverty more than any other"and has
"made almost no difference to the size of families."
Material Deprivation Among Children
The latest data indicates that 24% of children (3.51 million) are estimated to be living in material deprivation.
Material deprivation is defined by the Department for Work and Pensions as lacking a certain number of items from a specified list.
The list includes living in a damp-free home, the ability to pay bills without sacrificing essentials, access to a computer and reliable internet, and having contents insurance.
For children, the list includes having a place to do homework, receiving three meals a day, and possessing age-appropriate toys.
