‘Very deep poverty’ in Britain hits 30-year high
Poverty has become deeper in Britain; Approximately 6.8 million people currently live in “very deep poverty”, the highest level in three decades.
“Very deep poverty” refers to households whose post-housing income is below 40 per cent of the UK median for a couple with two young children, around 16,400 stg ($32,440) per year.
The report prepared by the Joseph Rowntree Foundation (JRF), which conducts research on solving poverty in Britain, stated that the overall poverty rate in the United Kingdom has fallen slightly from 24 percent in 1994/95 to 21 percent in 2023/24, but “very deep poverty” has increased from 8 percent to 10 percent and now accounts for almost half of everyone in poverty.
The report states that child poverty has also increased, with 4.5 million children in poverty, increasing for the third year in a row.
This follows Chancellor of the Exchequer Rachel Reeves’ decision in November to remove the two-child limit on benefit payments; This move, which aims to reduce child poverty rates by increasing benefits for families, will cost 3.1 billion stg ($6.1 billion), officials estimate.
The cap, introduced by the Conservative government in 2017, means many low-income families are unable to get more help when they have a third or subsequent child.
The JRF welcomed the removal of the two-child limit but warned it “cannot be a one-stop move” and warned that progress is likely to stall unless further action is taken in the government’s strategy to end child poverty.
Children, along with disabled people, continue to be disproportionately affected by poverty, while some minority groups, such as Bangladeshi and Pakistani communities in Britain, face particularly high poverty rates, the report says.
The British economy grew by a stronger-than-expected 0.3 percent in November, its strongest monthly increase since June. However, inflation rose to 3.4 percent in December, above forecasts, but is expected to slow sharply soon.
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