Key Findings: A new report by the Joseph Rowntree Foundation (JRF) reveals that 6.8 million people in the UK—half of all those in poverty—now live in “very deep poverty,” the highest level in three decades. The overall poverty rate fell slightly from 24% in 1994/95 to 21% in 2023/24, but “very deep poverty” rose from 8% to 10%. Child poverty also increased for the third consecutive year, with 4.5 million children affected.
Immediate Action & Core Facts
The JRF defines “very deep poverty” as households with an after-housing-costs income below 40% of the UK median, equivalent to £16,400 annually for a couple with two young children. The report highlights that 1.9 million people (3%) remain persistently in this category, requiring an additional £14,700 annually to escape poverty. Additionally, 3.8 million people experienced destitution—a more extreme condition where households cannot afford basic necessities like food, warmth, or shelter.
Deeper Dive & Context
Policy Response: Welfare Changes
The findings follow Finance Minister Rachel Reeves’ decision in November 2023 to scrap the two-child limit on welfare payments, set to take effect in April 2024. The policy, introduced by the Conservative government in 2017, restricted benefits for families with three or more children. Officials estimate the change will cost £3.1 billion and aims to reduce child poverty by increasing support for larger families.
Economic Pressures
The JRF analysis underscores that low-income households continue to face a cost-of-living crisis, with many forced to skip meals, fall behind on bills, or borrow to survive. Peter Matejic, JRF’s chief analyst, stated that poverty in the UK is “deeper and more damaging than at any point in the last 30 years.” The data covers the 2023-24 fiscal year, the final year of the Conservative government.
Opposing Perspectives
While the report highlights worsening conditions, some analysts note that the overall poverty rate has slightly improved. However, critics argue that the rise in “very deep poverty” and child poverty indicates systemic failures in social support. The JRF emphasizes that immediate policy interventions are needed to address the crisis.