Extreme poverty rate shoots up in UK – study

Nearly seven million people are living in severe hardship, the highest level on record, according the Joseph Rowntree Foundation

Poverty in the UK has worsened, with record numbers living in severe hardship and unable to afford basic necessities, according to an analysis by a leading charity.

More than one in five people in the UK – about 14.2 million – were living in poverty in 2023/24, the final year of the last Conservative government and the latest year for which official figures are available, the Joseph Rowntree Foundation (JRF) said in a report on Tuesday. Of these, about half, or 6.8 million people, were experiencing “very deep” hardship, the highest number in 30 years.

Children, renters, disabled people, and those in insecure work were among the groups most affected. Nearly 4.5 million children lived in poverty in 2023/24, 600,000 more than during the pandemic and marking the third consecutive year of increases. Rates were highest in larger families, where 44% of children were affected. People renting privately faced greater risks than homeowners, while disabled people and informal carers were also disproportionately affected, the report noted.

The most severe cases are even more acute. About 3.8 million people, including around one million children, experienced destitution, being unable to afford basics such as heating, clothing, and food.

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“Poverty in the UK is still not just widespread, it is deeper and more damaging than at any point in the last 30 years,” said JRF’s chief analyst Peter Matejic. “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.”

Poverty rates varied across the UK, with London and the West Midlands among the hardest-hit areas, according to the report.

Rising living costs and stagnant wages have contributed to the increase in severe poverty, the charity stated. Inflation for essentials such as food, energy, and rent has surged in recent years, while earnings for low-income households have barely increased, leaving many struggling to cover basic needs.

The poorest UK households have only become poorer under Prime Minister Keir Starmer’s Labour government, despite promises to boost living standards, according to the latest data from independent research consultancy Retail Economics.