Archive · 27 Jan 2026
Poverty in Britain Reaches Record High
A new report says that poverty in Britain is getting worse, especially for children and certain minority groups.
About 6.8 million people are now living in 'very deep poverty', which means they have very little money after paying for their homes.
This is the highest number in 30 years.
The report also says that 4.5 million children are living in poverty, which has been increasing for three years in a row.
The government has decided to remove a rule that limited welfare payments to families with more than two children, which is expected to help.
However, the report warns that more needs to be done to really make a difference.
Despite some economic growth, inflation is still high, making it harder for people to afford basic things.
6.8 million people in Britain are living in 'very deep poverty', the highest level in three decades.
The overall poverty rate in the UK fell slightly from 24% in 1994/95 to 21% in 2023/24, but 'very deep poverty' increased from 8% to 10%.
Child poverty has risen for the third year in a row, with 4.5 million children now in poverty.
The government has decided to remove the two-child limit on welfare payments, which is expected to cost 3.1 billion pounds and help reduce child poverty.
The report warns that without further action, progress in reducing child poverty is likely to stall.
- Who
- 6.8 million people in Britain, including 4.5 million children
- What
- Poverty rates, particularly 'very deep poverty', have increased
- When
- Report released on Tuesday, data for 2023/24
- Where
- United Kingdom
- Why
- Economic factors and policy changes, such as the removal of the two-child limit on welfare payments
- Very Deep Poverty
- 6.8 million people
- Overall Poverty Rate
- 21% in 2023/24
- Child Poverty
- 4.5 million children
- Two-Child Limit Removal
- Costs 3.1 billion pounds
- Economic Growth
- 0.3% in November
- Inflation Rate
- 3.4% in December
- Household Income Threshold
- 16,400 pounds for a couple with two children
