More than one in three children and a quarter of adults in the UK are living in poverty, according to a landmark report by the Social Metrics Commission (SMC). The study found that deprivation levels have reached the highest point this century, with over 16 million people—24% of the population—now classified as living in poverty. This marks the highest rate since comparable records began in 2000.
The report, which uses a broader measure of poverty adopted by the UK government in June, reveals that the cost of living crisis has pushed an additional 2 million people into severe hardship since 2019. Children have seen the biggest increase, with an extra 260,000 falling into poverty since before the Covid pandemic, bringing the total to 5.2 million, or 36% of all children. However, this represents a slight decrease from previous peaks.
Under the new definition, which includes inescapable costs such as childcare, disability expenses, rent, mortgages, and liquid assets, 1.6 million more children are considered in poverty than under the previous income-based measure. The report highlights that over half (55%) of children in poverty live in families with three or more children, reigniting calls for the government to scrap the two-child benefit cap. Prime Minister Keir Starmer has resisted this, citing the £3 billion annual cost as an unfunded pledge.
The study also found a worrying rise in poverty among disabled people, with 1.8 million more affected since 2019-20, bringing the total to 8.7 million. More than half of those in severe hardship live in a family that includes a disabled person. Additionally, nearly one in 10 of those in poverty are in families with full-time work, illustrating the impact of record inflation on employed households.
Philippa Stroud, chair of the SMC, said: 'Whilst this report shows that poverty rates are now higher than at any point this century, they have never fallen below 21% over that same timeframe. This shows the real challenge facing us all in ensuring that we move the dial on poverty in the UK.' The Trussell Trust described the rise in child poverty as 'particularly alarming,' reflecting the increased need for food banks across the country.
