'Very deep poverty' level worst in 30 years in Britain
What's the story
A report released on Tuesday by the Joseph Rowntree Foundation (JRF) has revealed that poverty in Britain has deepened, with around 6.8 million people now living in "very deep poverty." This is the highest level recorded in three decades. The term "very deep poverty" is defined as households with an after-housing-costs income below 40% of the UK median, which is roughly £16,400 (₹20.6 lakh) annually for a couple with two young children.
Poverty trends
Overall poverty rate decreases, but 'very deep poverty' rises
The JRF report showed that while the overall poverty rate in the United Kingdom decreased slightly from 24% in 1994/95 to 21% in 2023/24, "very deep poverty" has increased from 8% to 10%. This means nearly half of all people living in poverty experience "very deep poverty." The report also highlighted a rise in child poverty, with 4.5 million children living in such conditions for the third consecutive year.
Policy change
Government's response to rising child poverty
In response to the rising child poverty rates, Finance Minister Rachel Reeves announced in November that the two-child limit on welfare payments would be scrapped from April. This decision is expected to cost £3.1 billion (₹38,961 crore) and aims to reduce child poverty by increasing benefits for families. The cap was introduced by the Conservative government in 2017 and prevented many low-income families from receiving further benefits for third or subsequent children.
Response
Children, disabled, minority among those disproportionately affected by poverty
The report states that children remain disproportionately affected by poverty. Other groups profoundly affected by poverty are people with disabilities, while certain minority groups, such as Bangladeshi and Pakistani communities in Britain, experience particularly high poverty rates. Notably, Britain's economy grew by 0.6 per cent in November 2025. However, inflation also rose to 3.4 per cent, above the forecast level.