Deep Poverty Crisis Deepens: 6.8 Million Britons in Severe Financial Distress
Record High: 6.8 Million in Deep Poverty as Poorest Get Poorer

Britain's Deep Poverty Crisis Reaches Record Levels

The Joseph Rowntree Foundation has revealed alarming new statistics showing Britain's poorest citizens are getting poorer, with the number of people living in very deep poverty reaching its highest level since records began nearly three decades ago.

Stark Statistics Paint Bleak Picture

According to the social change organisation's latest analysis, a staggering 6.8 million people were living in very deep poverty across the twelve months to March 2024. This represents almost half of everyone in poverty and marks the highest level since the JRF began analysing Government data in 1994/95.

The foundation defines very deep poverty as households with incomes after housing costs that fall below 40% of the UK average. Their comprehensive UK Poverty Report suggests more than one in five people across the nation - approximately 14.2 million individuals - were living in poverty during the same period.

Poverty Deepens Rather Than Eases

Perhaps most concerning is the finding that poverty has "hardened, not eased" according to the report. The average person living in poverty now finds themselves 29% below the poverty line, a significant deterioration from the 23% recorded in the mid-1990s.

JRF chief analyst Peter Matejic delivered a stark assessment: "Poverty in the UK is still not just widespread, it is deeper and more damaging than at any point in the last 30 years. 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."

Work No Guarantee Against Poverty

The report highlights a troubling reality about modern Britain: employment no longer guarantees escape from financial hardship. Around two-thirds of working-age adults deemed to be in poverty - approximately 5.4 million people - live in households where at least one person is employed.

This finding challenges conventional wisdom about work providing a pathway out of poverty and suggests structural issues within the labour market and welfare system.

Government Measures and Future Projections

The Government has pointed to its decision to scrap the two-child benefit limit, confirmed in the autumn budget, as a significant step forward. Officials estimate this change alone will see around 400,000 fewer children living in poverty this April compared with twelve months earlier.

When combined with wider measures outlined in the child poverty strategy published in December, the Government claims these policies will lift 550,000 children out of poverty by the end of this Parliament in 2029/30.

However, the JRF warns that progress may stall without further action. Their analysis suggests that "without further changes, relative poverty levels remain stuck at a high level" after April this year. According to central Office for Budget Responsibility projections, the headline poverty rate "will remain broadly unchanged", standing at 21.3% in 2026 and 21.1% in 2029.

Campaigners Call for Essential Guarantees

The Joseph Rowntree Foundation has repeated its call for the Government to introduce an essentials guarantee within universal credit, creating a protected minimum floor to ensure a "safety net below which no-one should fall".

Other recommended measures include permanently linking local housing allowance to local rents to improve affordability and implementing greater protections in the labour market for workers, including the self-employed, who need temporary support due to illness or caring responsibilities.

Mr Matejic emphasised the broader implications: "People want to feel like the country is turning a corner. That means taking action on record levels of deep poverty so everyone can afford the essentials. There can be no national renewal if deep poverty remains close to record levels."

Political Responses and Future Outlook

A Government spokesperson responded: "We understand that too many families are struggling, and we are taking decisive action to address poverty by boosting the national living wage by £900, cutting energy bills by £150 from April, and launching a £1 billion crisis and resilience fund to help households stay afloat."

Liberal Democrat work and pensions spokesperson Steve Darling offered a contrasting perspective, describing the report as a "devastating indictment of the previous Conservative Government's neglect for the most vulnerable in our society". He called for immediate action on the cost of living, including measures to reduce energy bills and increase affordable housing.

With statistics suggesting a third of British children could be living in poverty by 2029-30 without intervention, the debate about how to address Britain's deepening poverty crisis shows no signs of diminishing.