UK Poverty 2026: The essential guide to understanding poverty in the UK
This report sets out the nature of poverty in the UK, and evaluates changes under the last Conservative-led Government.
It also sets out the scale of action necessary for the current Government to deliver the change it has promised.
Today, we’ve launched our annual state of the nation report, UK Poverty 2026. The report, which accounts for the time just before the current government took power and clearly shows the depth of the problem and the scale of the challenge.
Some of the key findings of the report include:
More than one in five people in the UK, around 14.2 million, were living in poverty. Britain’s poorest are getting poorer: 6.8 million people are now living in very deep poverty, almost half of everyone in poverty, the highest level on record.
Poverty has hardened, not eased: the average person in poverty now lives 29% below the poverty line, compared with 23% in the mid-1990s.
Child poverty has climbed again: 4.5 million children are in poverty, rising for the third year in a row.
Hunger is spreading fast: 1.1 million more people in poverty cannot afford enough food than two years ago bringing the total to 3.5 million, while 2.8 million more people overall are now food insecure bringing the total to 7.5 million.
Work doesn’t guarantee security: around two-thirds of working-age adults in poverty, 5.4 million people, live in households where someone is in work.
New JRF analysis shows that, under central Office for Budget Responsibility (OBR) projections, the headline poverty rate will remain broadly unchanged (21.3% to 21.1%) between 2026 and 2029.
Current policies will see little progress towards meeting the government’s manifesto commitment to end the mass dependence on food banks.
People in very deep poverty now make up the biggest group of people in poverty, at 6.8 million people.
This is unacceptable for the fifth richest country in the world, and it has consequences.
Overall poverty rates have flatlined since 2005/06 at just over a fifth. The longer a family spends in poverty, the worse the effects on that family.
The longer we tolerate unacceptably high levels of poverty, the worse it is for our country.
THE TIME FOR ACTION IS NOW.
We found that Britain’s poorest people are getting poorer. And poverty is hardening, not easing.
Almost 1/2 of all people in poverty in very deep poverty
More than 1/4 disabled people living in poverty
Around 2/3 of working-age adults in poverty live in a household where someone is in work
Feelings of frustration – and the need for urgent action – were evident
The lives behind the numbers — unacceptably tough, and getting harder
With a foreward from our Grassroots Poverty Action Group (GPAG), this report speaks to some of the policies that would lift hundreds of thousands of children, disabled people and other families out of poverty.
It can be done, and it has been done before. The alternative is a reality that feels harder to thrive in.
New report warns that progress risks stalling unless proven models are rapidly expanded
SCOTLAND has made significant and internationally notable progress in reducing destitution among people who are blocked from accessing mainstream support because of their immigration status, a major new evaluation has found.
But the study warns that provision remains too limited to meet the scale of need.
The independent report examines the impact of Fair Way Scotland, an action-learning partnership providing integrated support for people with No Recourse to Public Funds (NRPF) or restricted or uncertain eligibility.
The model brings together specialist casework, modest financial assistance and access to community-based accommodation, helping people to meet basic needs and stabilise their circumstances. Funders, Scottish Government and charities are coming together today for a launch event to hear findings from the report and explore solutions that will reduce destitution.
The report found clear improvements in people’s safety and wellbeing when they receive consistent casework, access to community-based accommodation and modest financial support through Fair Way Scotland.
The report, authored by Heriot-Watt University and funded by the Joseph Rowntree Foundation (JRF), outlines how these types of support can reduce harm inflicted on people and build a foundation for longer term progress.
Professor Beth Watts-Cobbe, Deputy Director, at the Institute for Social Policy, Housing, Equalities Research (I-SPHERE), Heriot-Watt University, said: “This evaluation demonstrates that Scotland has taken significant and internationally notable steps to prevent destitution. But the scale of current provision does not yet match the scale of need.
“We found strong evidence that consistent casework, safe accommodation and small but reliable cash payments reduce harm and support people to progress their immigration cases. The question now is whether Scotland is prepared to expand what clearly works so that no one faces destitution.”
The report highlights the exceptional disadvantage facing people supported through Fair Way Scotland:
93% of those surveyed were destitute
Almost one in five were sleeping rough at the point of contact
More than half had slept rough in the past year
17% had left accommodation because they did not feel safe
Importantly, outcomes improved the longer people engaged with support. Those receiving help for more than three months were significantly less likely to be sleeping rough, living in overcrowded conditions, moving repeatedly, or going without essentials like food and toiletries.
Demand, however, far exceeds what current resources can meet. The evaluation estimates that around 4,000 people across Scotland require this type of support each year, with the country making great progress by meeting around a quarter of that demand thus far.
Chris Birt, Associate Director for Scotland at the Joseph Rowntree Foundation, said: “This evaluation shows in stark terms both the effectiveness of Fair Way Scotland and the scale of unmet need. The model works – but demand is far beyond what the current system can cope with. Scaling Fair Way Scotland is now urgent, not optional.
“We need coordinated action from all tiers of government. The UK Government, Scottish Government and local councils need to better use the powers they have, underpinned by a clear commitment from housing associations to provide the safe, stable accommodation that is essential to reducing harm. And ultimately the UK Government need to stop using policy to create destitution.
“If we are serious about preventing destitution, every part of the system must step up together.”
Frontline accounts within the report underline the difference stability can make. Workers describe how access to casework, legal advice and community-based accommodation enables people to progress their status and access support to which they are entitled.
The evaluation also reflects the voices of people directly supported by Fair Way Scotland. Many described how cash payments – usually of £60 a week – allowed them to buy food and travel, restoring dignity and reducing crisis.
The evaluation recognises that Scotland is the only part of the UK with a national strategy that explicitly commits to ending destitution for all, including those with No Recourse to Public Funds or restricted eligibility. Yet, progress remains slow, with local authorities and third sector organisations under increasing pressure.
Human rights lawyer, Jen Ang of Lawmanity, said: “Scotland already has more scope to act than many decision-makers realise. The evaluation shows that when existing powers are used confidently and consistently, people can be protected from the deepest harms associated with destitution.
“What stands out in this report is the strength of the evidence for scaling Fair Way Scotland. It offers a lawful, practical and humane approach that reflects Scotland’s commitments to dignity and fairness. The task now is ensuring that these findings translate into action so that support is available to everyone who needs it.”
Key recommendations within the report include:
Expanding community‑based accommodation
Widening access to specialist legal advice
Establishing a hardship fund for those excluded from mainstream support
Ensuring councils consistently use the powers available to them.
Beth added: “Scotland has the tools, evidence and experience to end destitution for those currently excluded from mainstream support. What is needed now is the resolve to act at scale. Doing so would prevent severe hardship, reduce avoidable harm and uphold Scotland’s commitments to fairness and dignity.”
Fair Way Scotland is a partnership of third sector organisations seeking to prevent homelessness and destitution among those with No Recourse to Public Funds (NRPF) in Scotland.
Key Fair Way Scotland delivery partners include theScottish Refugee Council, Simon Community Scotland, Turning Point Scotland and Refugee Sanctuary Scotland– supported by Homeless Network Scotland and learning partners Heriot-Watt University and Joseph Rowntree Foundation.
Specialist legal expertise is commissioned from a coalition of legal firms: Just Right Scotland, Latta & Co, Legal Services Agency, Settled and Shelter Scotland. COSLA and the Scottish Government are strategic partners, committed to working with Fair Way as part of their commitment to Ending Destitution Together and Ending Homelessness Together.
New strategy to lift 550,000 children out of poverty by 2030 – delivering the largest reduction in child poverty since records began
Support for working families to stop children growing up in B&Bs, expanding childcare for families on UC and helping parents save up to £500 on baby formula
Families struggling with the cost of living to benefit from wider support announced at budget including £150 off energy bills, increasing the living wage by £900 a year and removal of two-child limit
Part of the Government’s plan to deliver more security, opportunity, and respect for every family across the UK
Around 550,000 children will be lifted out of poverty by 2030 – the biggest reduction in a single parliament since records began – as the Government launches its Child Poverty Strategy today (Friday 5 December).
Following the reversal of the two-child limit, the strategy tackles the root causes of poverty by cutting the cost of essentials, boosting family incomes, and improving local services so every child has the best start in life.
The strategy found that children growing up in poverty do less well in school, are more likely to be unemployed when older and earn less throughout their lifetimes. Failure to tackle this problem has been holding back the economy, as well as stifling children’s potential.
New interventions in the strategy include more accessible childcare for working parents on Universal Credit. Childcare costs are one of the biggest barriers for parents who want to work and those starting or returning to jobs can particularly struggle to cover upfront childcare fees before they receive their first payslip.
From next year, the rules will change to make it easier for new parents who receive Universal Credit to get back to work by extending eligibility for upfront childcare costs to those returning from parental leave. This will prevent new parents from facing a debt trap meaning more parents can get back to work and get on in work faster.
To support more parents with more than two children into work, families who receive Universal Credit will also be able to get support with childcare costs for all their children.
Children living in temporary accommodation are living in one of the deepest forms of poverty, this has a devastating impact, particularly on children. A stay in temporary accommodation increases a child’s experience of family disruption, missed schooling and damage to physical and mental health.
The strategy will also end the unlawful placement of families in Bed and Breakfasts beyond the six-week limit. To support this, the Government is investing £8 million in Emergency Accommodation Reduction Pilots in 20 local authorities that have the highest use of Bed and Breakfasts for homeless families – continuing the programme for the next three years.
Alongside this, the government will provide £950 million through the fourth and largest round of the Local Authority Housing Fund from April 2026 to deliver up to 5,000 high-quality homes for better temporary accommodation by 2030. Further details will be set out in the upcoming Homelessness Strategy.
A new legal duty will also be introduced for councils to notify schools, health visitors, and GPs when a child is placed in temporary accommodation, so no child is left without support. This enables health and education providers to deliver a more joined up approach to support children experiencing homelessness.
The UK Government will also work with the NHS to end the practice of mothers with newborns being discharged to B&Bs or other forms of unsuitable housing.
The government will also support families with the cost of essentials by helping families to buy more affordable infant formula. The cost of some infant formula brands has risen by 25% in two years, putting pressure on families who cannot or choose not to breastfeed.
The government will set clear guidance for retailers that – together with allowing families to use loyalty points, vouchers, and gift cards to purchase formula – could save parents up to £540 in a baby’s first year and remove unnecessary barriers for low-income families.
Taken together, the measures in the strategy will lift 550,000 children out of relative low income at the end of this Parliament, with 7.1 million children seeing household incomes rise, including 1.4 million in deep material poverty – the largest reduction in child poverty by any Government in a single Parliament.
Prime Minister Keir Starmer said: “Every child deserves the best possible start in life, with their future no longer determined by the circumstances of their birth. Yet too many children are growing up in poverty, held back from getting on in life, and too many families are struggling without the basics: a secure home, warm meals, and the support they need to make ends meet.
“I will not stand by and watch that happen, because the cost of doing nothing is too high for children, for families, and for Britain.
“This is a moral mission for me. It’s about fairness, opportunity, and unlocking potential. Our strategy isn’t just about reversing the failures of the past, it sets a new course for national renewal, with children’s life chances at its heart.”
Secretary of State for Work and Pensions, Pat McFadden said: “Tackling child poverty is an investment in working families and our country’s future.
“There is a direct link between children in poverty growing up to be adults not in work, education or training – we cannot afford to waste a generation’s potential and talents.
“Our strategy will deliver support where families need it most, giving every child a good start in life and giving them the opportunity to succeed.”
Education Secretary Bridget Phillipson said: “Child poverty is a stain on our country. I’ve seen the damage poverty does first hand, and bearing down on it sits at the very core of this government’s mission.
“This strategy, lifting over half a million children out of poverty, represents an historic moment for generations of families now and into the future.
“And whether it’s expanding free school meals, rolling out free breakfast clubs, or revitalising family services, we are determined to give every child the very best start in life.”
It comes as the Prime Minister visits a children centre in Wales today with the Welsh First Minister to meet families and children who are set to benefit from the interventions in the strategy.
It follows his visit to Glasgow yesterday where he spoke to Child Poverty Campaigners, MSPs, and other key partners to discuss the Government’s strategy to cut child poverty across the UK.
Stacey, from Changing Realities an organisation which has supported the development of the Child Poverty Strategy, discussed her experiences with the Prime Minister in Wales today. She said: “This strategy makes a good start to the essential work of addressing record levels of child poverty in this country.
“Lifting the two-child limit is a step on the road to investing in our children and our social security system, and can only be a good thing in lifting hundreds of thousands of children out of poverty.
“After championing the removal of the two-child limit over the last year, even though my own family won’t benefit it is great to finally feel listened to and knowing the difference this change will make.
“As a parent who knows first-hand the harm poverty causes, I stand ready and determined to continue the work required to ensure that no child in this country faces poverty. I call on all of us to do the same.”
Shortly after the election, the Prime Minister set up the Child Poverty Taskforce to bring together government and experts to explore how Government could use all its available levers to drive down child poverty.
This strategy is the first step on our road to ending child poverty and delivers on the commitment to reduce child poverty this parliament.
It comes as child poverty levels in the UK has reached a historic high. Today, 4.5 million children (around 31%) are living in relative poverty after housing costs, 900,000 more since 2010/11. Around 2.6 million children are growing up in households without enough food, and last year 1.1 million relied on food banks.
In England alone, more than 172,000 children are living in temporary accommodation and three quarters of children in poverty now come from working families.
Children growing up in poverty are more likely to not be in education, employment or training as an adult, earn less than their peers and less likely to achieve good GCSE results or do well at school.
Acting now will cost significantly less than the long-term consequences of poverty.
Tackling child poverty is not just a moral imperative – it is an investment in Britain’s future.
That’s why the Labour government is reversing the two-child limit in Universal Credit – a failed policy experiment that punished children and been one of the biggest drivers of hardship since its introduction in 2017.
The majority of families who will gain from the removal of the limit are in work. Around 300,000 children are in poverty directly because of this policy, equivalent to 100 children pushed into hardship every day. Without intervention, 150,000 more would have fallen into poverty by 2030.
Removing the two-child limit is the most cost-effective way to drive down child poverty rates – lifting 450,000 children out of poverty in the final year of this Parliament, rising to 550,000 alongside other measures such as the expansion of free school meals, help with energy bills and the government’s childcare offer.
Priya Edwards, senior research and policy manager at Save the Children UK, said: “Families will be better off under this plan with 7.1 million children seeing their household incomes boosted by the end of this Parliament.
“Scrapping the two-child limit to benefits, expanding free school meals, and increasing childcare support for families including for those returning to work after maternity leave are bold measures to improve childhoods’ – not the sticking plaster measures of the past.
“Ministers involved in creating the strategy listened extensively to children impacted by deep poverty over many months and we hope this way of working is used as a blueprint for creating policy in future that impacts young people.
“We welcome this expansive and historic plan, and we look forward to seeing the difference it can make to children’s lives in the years to come.”
Dame Clare Moriarty, Chief Executive of Citizens Advice, said: “here is no excuse for child poverty, which damages countless children’s lives every single day. This is the moment when we must draw a line in the sand – and as a country do everything in our power to turn the tide for children growing up in poverty and hardship.
“We applaud the publication of this Child Poverty Strategy. If fully delivered, the commitments made today have real potential to transform children’s lives. Our focus now is on ensuring these promises translate into action on the ground, helping to put food on tables, stability in households and hope back into children’s lives.
“We stand ready to work with government to help make that happen.”
The Joseph Rowntree Foundation said: “This morning, the government published its full Child Poverty Strategy, setting out plans to reduce hardship for children growing up in the UK by the end of the parliament.
“It’s a crucial commitment to delivering on one of their central manifesto promises.”
For the first time, this government will also target reductions in deep material poverty as part of the strategy, which goes beyond a family’s income, to understand children’s experience of poverty and measures the number of children in the UK who are going without essentials such as three meals a day or growing up in a damp-free home.
Two million children (14%) are currently in deep material poverty, lacking at least 4 of 13 essential items.
This is a UK-wide strategy, with ministerial roundtables in Scotland, Northern Ireland and Wales which were attended by ministers of the respective nations, and ministers and officials having visited all the regions of England to meet with key child poverty representatives and visit frontline delivery projects.
Respecting devolution settlements and complementing work that is already underway in nations and regions is central to this strategy. Each nation has its own distinct devolution settlement which sets out powers to tackle child poverty.
These powers vary across nations, with some levers being devolved to the governments of Scotland, Wales and Northern Ireland, while others remain reserved to the UK government.
Devolved governments also receive funding through the Barnett formula.
Around 1 in 4 children in Scotland are living in poverty.
Poverty remains far too high, and people are feeling overlooked and ignored by politicians. The next Scottish Parliament is an opportunity to build a better future for all children in Scotland.
Scottish Government identified 6 priority families where children are at greater risk of poverty: – Nearly 9 in 10 children in poverty are in a priority family – Children in 2 or more priority family groups are more than 4x as likely to be in poverty than children in none of them.
It is crucial that the next parliament focuses on the things that matter to people, like tackling child poverty.
Ensuring parents have access to flexible work and affordable childcare, investment in affordable housing and an adequate social security system are essential.
Scotland demands better because getting it right today, will build a better future for us all.
TRUSSELL: The new Universal Credit and PIP bill will push nearly HALF A MILLION more people into severe hardship and towards the doors of food banks
Additional protections for millions of vulnerable people on benefits are set to be written into law, under new measures being introduced to Parliament yesterday [18 June 2025].
New welfare legislation to ensure there are robust protections in place to support the most vulnerable and severely disabled.
Nearly 4 million households to benefit from uprating of Universal Credit standard rate, the largest, permanent real-terms increase to basic out of work support since 1980, according to the IFS.
More than 200,000 people with most severe, lifelong conditions to be protected from future reassessment for Universal Credit entitlement.
13-week period of financial support for those affected by PIP changes as part of upcoming welfare reforms.
Comes alongside £1 billion employment support package that will unlock opportunity and grow the economy as part of the Plan for Change.
The Universal Credit and Personal Independence Payment Bill will provide 13-weeks of additional financial security to existing claimants affected by changes to the PIP daily living component, including those who their lose eligibility to Carers Allowance and the carer’s element of Universal Credit, according to the UK government – but charity Trussell says the bill will push nearly HALF A MILLION more people into severe hardship.
The 13-week additional protection will give people who will be affected by the changes time to adapt, access new, tailored employment support, and plan for their future once they are reassessed and their entitlement ends.
This transitional cover is one of the most generous ever and more than three times the length of protection provided for the transition from DLA to PIP.
The Labour government says it inherited a broken social security system, with costs spiralling at an unsustainable rate and millions of people trapped out of work. The case for change is stark:
Since the pandemic, the number of PIP awards has more than doubled – up from 13,000 a month to 34,000 a month. That is around 1,000 people signing on to PIP every day – that is roughly the size of Leicester signing up every year.
The surge has been largely by driven by a substantial increase in the number of people who report anxiety and depression as their main condition. Before the pandemic (in 2019), 2,500 people a month were awarded PIP for these conditions, this has more than tripled to 8,200 a month in 2023.
Almost 1 million young people – 1 in 8 – are not in education, employment or training.
1-in-10 people of working age are now claiming a sickness or disability benefit.
Without reform, the number of working age people on disability benefits is set to more than double this decade to 4.3 million.
Spending on working age disability and incapacity benefits is up £20 billion since the pandemic and is set to increase by almost that much again by the end of this Parliament, to a staggering £70 billion a year.
Labour says that’s why, through the introduction of this Bill; the government is fixing our broken social security system so it supports those who can work to do so while protecting those who cannot – putting welfare spending on a more sustainable path to unlock growth as part of our Plan for Change.
Work and Pensions Secretary Liz Kendall said: “Our social security system is at a crossroads. Unless we reform it, more people will be denied opportunities, and it may not be there for those who need it.
“This legislation represents a new social contract and marks the moment we take the road of compassion, opportunity and dignity.
“This will give people peace of mind, while also fixing our broken social security system so it supports those who can work to do so while protecting those who cannot – putting welfare spending on a more sustainable path to unlock growth as part of our Plan for Change.”
As part of our (i.e. the Westminster govertnment’s) commitment to protect the most vulnerable and severely disabled, peace of mind will also be given to 200,000 individuals in the Severe Conditions Criteria group – individuals with the most severe and permanently disabling conditions who will never be able to work – as they will not be called for reassessed for Universal Credit (UC) under new legislation.
Those protected from reassessment will also be paid the higher rate of UC health top up of £97 per week, so they can live with dignity and security, knowing the reforms to the welfare system mean it will always be there to support them.
In the coming weeks, legislation will also be drafted for a Right to Try Guarantee. This will ensure that trying work will not, in and of itself, lead to a reassessment or award review, breaking down barriers to employment.
Reforms being delivered by the legislation introduced today go hand in hand with a £1 billion employment support package to support more people with health conditions back into work, unlocking opportunity and growing the economy as part of the Plan for Change.
Funding will offer personalised employment and health support for individuals on out of work benefits, with 500,000 people having already been supported into employment. This is a quadrupling the level of annual spend on supporting sick and disabled people into work, from the £275m in 2024/25 we inherited, to over £1bn in 2029/30.
Nearly 4 million households will also receive an income boost with the main rate of Universal Credit set to increase above inflation every year for the next four years – estimated to be worth £725 by 2029/30 for a single household 25 or over. This is around £250 higher than an inflation only increases.
The Bill will also rebalance Universal Credit rates by reducing the health element for new UC claims to £50 from April 2026, fixing a system which encourages sickness by paying health element recipients more than double the standard amount.
To open up opportunities to work, everyone affected by changes to the UC health element from April 2026 will be offered support from a dedicated Pathways to Work adviser, with 1,000 advisers in place across Britain.
All of those affected by reforms will be actively contacted and given the offer of a conversation about their support needs, goals and aspirations; offered one-to-one follow-on support, and given help to access additional work, health and skills support that can meet their needs.
The reforms build on the Get Britain Working White Paper that will overhaul Jobcentres, empower Mayors and local leaders to tackle inactivity, and deliver a Youth Guarantee so every young person is either earning or learning, as part of the Government’s ambition to deliver an 80% employment rate.
Additional information
The Bill will introduce a new additional eligibility requirement for the daily living component of PIP so that a minimum of 4 points must be scored on at least one daily living activity to be eligible for the daily living component. It will also rebalance Universal Credit.
Based on current forecasts, the rebalancing mean single households 25 or over, will see their standard allowance rise to around £106pw by the end of this parliament.
Current UC health top up is more than double the UC standard allowance for a single claimant.
There are 4 criteria for the healthcare professional to consider, all of which must apply for the claimant to meet the SCC, namely whether:
The individual’s level of function will always meet LCWRA
The individual’s condition will last for the rest of their life
There is no realistic prospect of recovery of function, and
The condition has been diagnosed by an appropriately qualified healthcare professional in the course of the provision of NHS services.
Scotland’s Social Justice Secretary: “Scrap damaging welfare reforms”
Social Justice Secretary Shirley-Anne Somerville has urged the UK Government to protect and enhance social security rather than making cuts.
The UK Government’s Universal Credit and Personal Independence Payment Bill has been published today, which includes the details of the first set of changes to ill-health and disability benefits. The Scottish Government will not mirror the Personal Independence Payment (PIP) changes in Adult Disability Payment in Scotland.
Social Justice Secretary Shirley-Anne Somerville said: “The UK Government’s proposed reforms will be hugely damaging to those who rely on social security support, particularly during the ongoing cost of living crisis.
“These plans have yet to be passed at Westminster, so there is still time for the UK Government to step back from this damaging policy and I strongly urge them to scrap their harmful proposals.
“The UK Government’s own analysis highlights how the proposals will push 250,000 more people across the UK into poverty – including 50,000 children. With around half of all children in poverty in Scotland living in a household with a disabled person, the changes threaten to undermine the progress that we are making to reduce child poverty, and the work of the UK Government’s Child Poverty Taskforce.
“That the UK Government is prioritising deep cuts to disabled people’s support is made even worse by their failure to abolish the two-child limit, which is estimated to have pushed more than 35,000 children into poverty since July last year.
“The reforms do not reflect the Scottish Government’s values. We will not let disabled people down or cast them aside as the UK Government has done. We will not cut Scotland’s Adult Disability Payment.
“The UK Government should follow our lead and protect the social security safety system, rather than dismantling it. If they do not, then disabled people can draw no other conclusion than the UK Government remain content to balance the books on the backs of the most vulnerable.”
Responding to the publication of the bill, Helen Barnard, Director of policy at Trussell said: “The UK government’s new Universal Credit and PIP bill, put before Parliament today, does almost nothing to ease the concerns of hundreds of the thousands of disabled people who fear that their social security support will be ripped from them.
“In fact, this bill will push nearly half a million more people into severe hardship and towards the doors of food banks.
“It is easy to see why so many MPs have voiced concerns about the damage this bill will do. What has been published today offers little for MPs deeply concerned about the impact of these cuts on their constituents.
“The last minute details on protections offer something for a small proportion of people, but even they will still see a real-terms cut. The reality of this bill is still record cuts in support for disabled people, and the biggest cuts to social security since 2015.
“It is shocking that MPs are being asked to vote through cuts without a full assessment of their impact, and especially worrying as we know that already three in four people referred to the Trussell community are disabled or live with someone who is.
“We know hunger and hardship already pushes up public service costs alone by £13.7 billion. MPs are being asked to vote for a Bill that will drive up hunger and hardship and undermine the UK government’s promises on economic growth and ending the need for emergency food.”
Today, the UK government published a bill, aimed at reforming the benefits system. Unfortunately, as it stands, this will be a disaster for disabled people – and is likely to worsen people’s living conditions, undermine their mental health, and increase the risk of suicide, says Mental Health Foundation.
These plans will not help reduce the number of disabled people out of work. Instead, they are counterproductive and cruel.
A more effective alternative for the government would be to move forward with its progressive policies that encourage people to return to work, such as the Right to Try scheme and improvements to support in job centres, and look at how well those work, without cutting support for disabled people.
The latest Joseph Rountree Foundation (2025) UK Poverty 2025 Report clearly shows that work doesn’t protect families from poverty.
In particular, the report highlights the “shockingly high” number of children living in poverty in working families:
50% of children in families where at least one adult is (but not all adults are) in work live in poverty.
Working-age adults are also impacted:
Two-thirds (68%) of working-age adults living in poverty are in a household where at least one adult works.
Responding to these figures, TUC General Secretary Paul Nowak said: “Every worker deserves to earn a decent living. But many working households are struggling to keep their heads above water.
“This is unacceptable. Working people should be able to put food on the table for their families and keep their children warm during the winter.
“After 14 years of Tory chaos and stagnation, we urgently need to boost living standards.
“That’s why this government’s Make Work Pay agenda is so crucial for millions of families up and down the country.
“More money in working people’s pockets means more spend on our high streets – that’s good for workers and good for local economies.
“And the Employment Rights Bill will mean more good and secure jobs – boosting productivity for businesses and giving workers more control over their lives and better chances to progress.
“Better work is crucial for ending child poverty, but decent social security matters too. The Government must remove the two-child benefit cap which is keeping too many children in working households in poverty.”
Out of four nations only Scotland will see child poverty rates fall by 2029 – JRF
Deprivation increases both the likelihood and severity of accidents – RoSPA
A joined-up approach is needed to address uneven level of accidents among deprived Britons
Following the release of the Joseph Rowntree Foundation (JRF), the Royal Society for the Prevention of Accidents (RoSPA) is urging the UK government to adopt comprehensive strategies to tackle child poverty and preventable accidents.
Released this week, the Joseph Rowntree Foundation’s UK Poverty 2025 Report reveals that without significant investment in social security, the UK government will not ease child poverty by the end of this Parliament. It also highlights that child poverty rates are significantly higher in England (30 per cent) and Wales (29 per cent) compared to Scotland (24 per cent) and Northern Ireland (23 per cent).
It emphasises the critical role of specific welfare policies, such as the Scottish Child Payment, in reducing poverty, with Scotland projected to see a decrease in child poverty rates by 2029. The report calls for targeted policy interventions to address these disparities and improve living standards across the UK.
The release follows the recent publication of RoSPA’s ‘Safer Lives, Stronger Nation’ campaign which showed that accidental deaths in the UK have reached an all-time high, with rates increasing by 42% over the last decade.
Accidents are now the second biggest killer of people under 40. In England alone, accident-related hospital admissions for serious injuries have risen by 48% in the past twenty years, hospitalising over 700,000 people annually.
The economic cost of preventable accidents is staggering, amounting to £12 billion every year due to lost working days and NHS medical care.
Dr. James Broun, Research Manager at RoSPA and author of ‘Safer Lives, Stronger Nation’, said: “Our major review of UK accident data has already uncovered the full scale and true cost of accidents for the very first time.
“We found that deprivation significantly increases both the likelihood and severity of accidents, compounding existing inequalities and creating a vicious cycle of disadvantage.
“This is why we are alarmed by the Joseph Rowntree Foundation’s findings and support their call for Government action to reduce child poverty, while we reiterate our own call for a national accident prevention strategy to help further reduce economic and health inequalities.”
UK Child Poverty Report 2025
The JRF’s latest UK Poverty shows that under current projections, only Scotland will see a reduction in child poverty rates by 2029, largely due to Scotland-specific welfare policies.
Key findings include:
Child poverty rates in Scotland are projected to fall, while rates in England and Wales remain high.
If the rest of the UK matched Scotland’s reduction in child poverty, 800,000 fewer children would be in poverty.
Specific welfare policies, such as the Scottish Child Payment, are crucial in reducing child poverty.
Deprivation and accident risk
RoSPA notes that deprivation is often linked to an increased risk of accidents. Factors such as unsafe housing, proximity to busy roads, and hazardous work conditions contribute to this risk. Moreover, economic deprivation is associated with health inequalities, which can exacerbate the severity of injuries from accidents.
Key points include:
Deprivation increases both the likelihood and severity of accidents.
Health inequalities linked to economic deprivation can compound injury severity.
Accidents can further entrench material inequalities by disrupting education and employment, creating a vicious cycle of disadvantage.
A Call for a National Accident Prevention Strategy
RoSPA calls for a National Accident Prevention Strategy to address these issues comprehensively. Such a strategy would focus on improving housing safety, reducing road traffic risks, and ensuring safer working conditions, particularly for those in hazardous jobs.
The Need for Government Action
Both JRF and RoSPA stress the urgency of government intervention. A credible child poverty strategy must include policies that rebuild the social security system, while a national accident prevention strategy is essential to reduce preventable injuries and deaths.
By linking these strategies, the UK can create a more holistic approach to improving public health and social welfare, ensuring that both poverty and preventable accidents are addressed through comprehensive, targeted policies.
JOSEPH ROWNTREE FOUNDATION’s COST OF LIVING TRACKER – WINTER 2024
The Government must tackle stagnant levels of hardship as part of their mission for growth, with worse living standards to come if no action is taken.
As Rachel Reeves unveiled her first budget for the new Labour Government, the 7th wave of our cost of living tracker captured the experiences of low-income households in the UK.
Collected between 8 and 31 October, surveying 4,065 households in the bottom 40% of incomes, our key measures of hardship remain entirely unchanged from 6 months ago, despite some key economic conditions easing. We find in October 2024 (see Figure 1):
7 million low-income households (60%) were going without the essentials in the previous 6 months, including 5.4 million experiencing food insecurity in the previous 30 days
4.3 million low-income households (37%) were in arrears on at least one household bill or credit commitment.
We also find around a 3rd of households (34% or 4 million households) held a loan they originally took out to pay for food, housing or essential bills worth around £9.6 billion in October 2024.
These findings of stalled progress track with our microsimulation modelling, which shows that disposable incomes after housing costs are forecast to fall over the rest of this parliament. Households in the bottom 40% of incomes are projected to be £440 worse off per year in real terms by October 2029, compared to October 2024.
If the Government are serious about ending the need for emergency food parcels, tackling child poverty and growing the economy, they must take bold action to prevent living standards from deteriorating further, and build strong foundations for household economic security for the future.
Economic context: flatlining disposable incomes
Our modelling shows that disposable incomes after housing costs for households in the bottom 40% of incomes fell in October 2021 and have flatlined since (see Figure 2).
This is caused by a complex economic picture of high prices and recovering wages:
Inflation has returned broadly to target since April 2024, at around 2%, however high inflation since the end of 2021 has baked in higher prices in areas such as food, and other costs such as energy are rising again.
Private rents have continued to increase ahead of inflation, up 8.7% in the year to October 2024.
Interest rates have now seen two cuts, to 4.75%, but the full impact of elevated interest rates is still feeding through to mortgage costs.
Real earnings growth returned from mid-2023, but has slowed this year, while the National Living Wage increased by 9.8% in April 2024.
From April 2024, benefit rates were uprated by 6.7%, and LHA was unfrozen with an average annual increase of £785 per household, so our data reflects several months of these uprated payments.
Going without essentials
The number of low-income households going without essentials like food, heating and showers remains at 7 million in October 2024, entirely unchanged from 6 months ago. This number has not dropped below 7 million since October 2022, showing persistent and embedded hardship in the UK (see Figure 3a).
Low-income households are routinely going without enough food, with 5.4 million unable to afford enough food in the 30 days prior to the survey in October 2024 (46%). This includes 5.2 million families cutting down or skipping meals (44%), and 3.8 million going hungry (32%) (see Figure 3b). While food insecurity is down from a peak of 5.9 million households, or half of all low-income households in October 2023, it is unchanged from May 2024 (46%).
Some groups within low-income households continue to face very high risk of going without essentials. In October 2024, 86% of low-income households on Universal Credit (UC) went without essentials and 82% of low-income private renters in receipt of housing benefits.
Neither group has seen any improvement since the last survey, with uprating and unfreezing of housing benefits in April 2024 only maintaining existing levels of hardship. Other demographics at high risk of going without essentials include 87% of lone parents and 85% of families with 3 or more children, around 8 in 10 households with a black respondent (81%) and around three quarters of private (76%) and social renters (75%) (see Figure 3c).
For the first time, we can report on families in receipt of different health and disability related elements of UC, who will be amongst those subject to the Government’s benefit reform.
We find around 9 in 10 low-income households receiving the Limited Capability for Work element (90%) and Limited Capability for Work and Work-Related Activity element (88%) were going without essentials in October 2024.
The recent Get Britain Working white paper signalled a welcome reset in approach to supporting disabled people into work. But making arbitrary cost savings of £3 billion the starting point for reforms risks undermining this and leaves uncertainty hanging over disabled people at greatest risk of hardship.
We have also seen no progress on the depth of hardship, with the number of essentials households are going without flatlining. Of those who are going without essentials, we have consistently seen around a 3rd going without 4 or more essentials in every wave of the survey (see Figure 3d). Families on Universal Credit are almost twice as likely to be going without 4 or more essentials than families not on any benefits in October 2024 (45% compared to 24%).
There has been no progress on the number of households in arrears, with 4.3 million low-income households (37%) behind on at least one household bill or credit commitment in October 2024, completely unchanged from the 6 months before (see Figure 4a).
Overall low-income households owe around £6.1 billion in arrears across all household bills and credit commitments. £2.3 billion of this is owed on bills with high consequences if you fall behind, including council tax, rent or mortgage payments and energy bills. For example, falling behind on council tax bills could make you liable to pay a years’ worth of council tax immediately. In October 2024 12% of low-income families are in arrears on their council tax, owing an average amount of £540.
Around 1.5 million low-income households (13%) are currently in arrears on their energy bills before we even head into winter. Those who are behind owe an average of around £500, and 58% of these households are in arrears with 4 or more different bills. A member of JRF’s Grassroots Poverty Action Group told us how normally over the summer period they are able to get on top of energy bills they have fallen behind on during the winter, but this summer that wasn’t possible.
Rent arrears also remain stubbornly high, with 18% of renters behind on their rent, largely unchanged since October 2021. They owe an average of £620 in arrears for rent alone. We find 13% of renters prioritised their housing bills over their other bills in the last 12 months, but 38% of those who did that were unfortunately still in arrears with their rent, showing that many low-income renters are out of options. Arrears for mortgage holders have improved however, with 12% in arrears in October 2024 compared to 16% a year ago in October 2023.
Within low-income families, some groups experience far greater risk of being in arrears. Families where someone has caring responsibilities are almost twice as likely to be behind on their bills compared to families where there are no carers (55% compared to 29%), and are unsurprisingly more likely to be going without essentials too (76% compared to 53%).
Other groups continue to be at elevated risk of being behind on their bills, including 66% of households with a black respondent, and 6 in 10 families with 3 or more children (62%) (see Figure 4b).
However there are some positive trends with some of the most at-risk groups seeing a sustained fall in the proportion in arrears, including households with respondents aged 18-24, families on Universal Credit and lone parents. While still incredibly high, these are at least moving in the right direction.
As with the overall picture of arrears, progress on the depth of arrears has stalled. There had been a steady downwards trend in the amount of money families owed following a peak in October 2022 of £1,630, but this had stopped in October 2024. Of those in arrears, the average amount owed was around £1,430.
In May 2024 we saw a promising sign of the proportion of households behind on 4 or more bills falling, however this hasn’t continued in October 2024 with 3 in 10 or 1.3 million families who are in arrears behind on 4 or more bills (31%) (see Figure 4c). Being behind on multiple lending commitments and bills to different providers negatively impacts people’s credit file and their ability to borrow in future.
Being behind on your bills is one type of debt, while another is where families have used credit to pay for things. Taking on a loan in and of itself isn’t a bad thing, however it becomes concerning when families rely on credit to cover essentials, can only access high-cost credit, or fall behind on repayments.
While many of our key measures of hardship have remained unchanged, the proportion of low-income families who hold loans they took out to pay for essential costs has moved in the wrong direction. In October 2024, 4 million low-income households (34%) held £9.6 billion of loans they originally took out to pay for food, housing or essential bills like council tax or energy (see Figure 5a).
This is very similar to a year ago, when 3.8 million low-income households (32%) owed £9.2 billion for these essentials loans. Taking on debt to pay for essentials has not been enough to prevent hardship, with nearly 9 in 10 of these families going without essentials in October 2024 (88%) and 7 in 10 behind on their bills (71%).
In October 2024, 2.2 million low-income families (19%) held high-cost credit loans, from unregulated lenders (loan sharks), doorstop lenders, payday lenders or pawnshops (see Figure 5b). The proportion who hold these loans had been falling since October 2022, but it has now risen for the first time. While the value of high-cost credit and unregulated loans has increased to £3.2 billion in October 2024, it is still lower than a year ago, at £4.1 billion in October 2023.
The total amount of debt across all unsecured loans and credit (see methodology note) currently held by low-income households has also increased in October 2024 to £23 billion, up from £19 billion in May 2024 (see Figure 5c). While still less than the £26 billion peak in October 2022, debt levels are now back to levels seen in October 2023 (£22 billion). The proportion of families who hold each type of debt in October 2024 mirror our findings in October 2023. It is largely the proportion of households holding each type of loan which has driven the total amount of debt held back up, rather than the amount of debt held for each loan type increasing.
During the cost of living crisis there was a tightening in the availability of affordable credit, due to stricter eligibility requirements, high interest rates and regulatory changes. These factors are likely to have contributed to the fall in loans between October 2022 and May 2024. As interest rates now ease, the availability of unsecured credit now appears to be increasing according to lenders surveyed by the Bank of England.
The proportion of low-income families who applied for loans or credit stayed the same from May to October 2024 at 55%, with three quarters of those who applied approved (75%). However there was a decrease in the proportion of those who applied and were declined in the previous 6 months, down from 14% in May 2024 to 9% in October 2024. We will continue to monitor this, a greater availability of credit may allow more families to take on loans, as seen in the reduction in families being refused credit in the last 6 months.
The October 2024 Budget was big in terms of the increased tax take and investment, but in reality will deliver very little change for low-income households. There were some positive changes such as restoring spending on public services, reducing the amount of deductions from benefits and extending the Household Support Fund (albeit at a lowered level). However our modelling shows these changes will only have limited impact for low-income families and Government must go much further to meaningfully shift the dial on hardship.
Using microsimulation modelling we converted macroeconomic forecasts from the OBR into household-level impacts for the bottom 40% of incomes to show the outlook over the rest of this parliament1. We find that average disposable incomes after housing costs are projected to be £440 per year lower in real terms in 2029, than they are in October 2024. This is largely being driven by rising housing costs, which we can see (from Figure 6a) means that relatively flat gross incomes lead to declining net (post-tax, disposable) incomes once housing costs are taken into account.
Our latest modelling shows the variation in experiences for households across the income distribution. While households across the income distribution are forecast to see their living standards fall throughout the rest of the parliament, households in the bottom 20% of incomes see a significantly larger proportional drop (see Figure 6b).
This story has yet again set out the embedded levels of hardship facing low-income households in the UK, alongside modelling which shows a stark warning that things are projected to get much worse over the rest of this parliament.
JRF is calling for the Government to place economic security for households at the centre of their mission for growth, to place growth on a surer footing and ensure change is felt by households who need it the most.
Firstly, the Government must make immediate progress on bringing down hardship by:
introducing a protected minimum amount of support 15% below Universal Credit’s current basic rate, as a first step towards an Essentials Guarantee – this would restrict the amount of reductions to benefit payments, including from debt repayments and the benefit cap
reforming the Household Support Fund and Local Welfare Assistance in England so everyone has somewhere to turn for immediate cash help in a crisis
unfreezing LHA and permanently relinking it to local rents
expanding the Warm Home’s Discount, to increase the level of support and widen eligibility to include people in receipt of disability benefits
increasing the rate of means tested benefits for carers, to help protect those on the lowest incomes from poverty
from 2025, not pursuing similar cuts to those planned by the previous Government, and committed to by Labour, to Universal Credit’s Work Capability Assessment ‘activities and descriptors’
scrapping the ‘two-child limit’ on support for children in Universal Credit and tax credits.
Secondly, the Government must also build the foundations of a stronger social settlement that can provide real economic security for families now and in the future. This would mean an Essentials Guarantee in Universal Credit to ensure everyone has a protected minimum amount of support to afford essentials like food and household bills.
It would also mean reform to the housing system, including increased funding for social house building. It would mean introducing an energy social tariff, that will support low- and middle-income households through the transition to net zero, by targeting the high and rising energy costs families are facing.
It would mean reducing risks for disabled people wanting to work and improving trust in the social security system, by working with disabled people to develop a replacement for the Work Capability Assessment and implementing a comprehensive Work Transition Guarantee.
And finally, a rethink of our care infrastructure so that parents have access to the right kind of childcare that allows them to work if they want to, as well as proper financial support for people who need to temporarily step away from work to help care for a loved one.
Together, these changes build strong foundations in the social security system to build lasting economic security for all, so that we can finally stop reporting that 7 million low-income households are going without essentials.
Ian Murray welcomes recommendations by Joseph Rowntree Foundation and vows to work with Scottish Government to tackle associated issues and break down barriers
Scottish Secretary Ian Murray spoke at the launch of the Joseph Rowntree Foundation’s (JRF) annual report into poverty in Scotland this week [7 October].
The report, summarised here, found that one million people in Scotland are living in poverty and that one in four of them are children. Recommendations were made to overhaul the social security system to tackle the problem and, in particular, for the UK and Scottish Governments to work together to make the process smoother in terms of reserved and devolved policy areas.
Ian Murray said: “I want to outline some of the steps that the new UK Government is taking to reduce poverty in Scotland and across the whole of the UK.
“We are committed to working together with the Scottish Government, and to reset the relationship between our two governments. Because, as this latest report highlights, it is vital that we can deliver on behalf of the people of Scotland.
“I’ve spent a lot of time with organisations such as Poverty Alliance to understand fully the complexities of what’s happening.
“Having one million people in poverty – a quarter of those children – is really sobering. But I think the most sobering thing is that none of us are surprised, and that really should be the thing that we need to tackle in terms of policy.
“We are only 95 days into this new government and we’ve already done a lot of engagement to make sure we can develop these policies, whether it be in social security or regarding the underlying parts of poverty.
“With the Budget coming up on 30 October, the Chancellor has been clear on two things. One is the economic inheritance that we’ve got to try and deal with and that those with the broadest shoulders will carry the majority of what needs to be done to grow the economy for all parts of our country.
“Reducing poverty across all sections of society, particularly child poverty, is in our DNA. We did it before. Unfortunately, we’re going to have to do it again.
“We will be publishing our Employment Rights Bill this week to fundamentally transform work and pay. It will ban exploitative zero-hour contracts, outlaw fire and rehire and will make sure that the National Minimum Wage becomes a genuine living wage.
“It’s still sobering that two-thirds of children in poverty are in households where one or both adults are working full time, and that means that there’s a big problem with pay. We hope that our New Deal for Working People will start to resolve some of those issues.
“I think it’s also important to highlight our Universal Credit review, which will look at everything from the two-child cap to housing allowances.
“We’ve also launched our Child Poverty Task Force, chaired jointly by the Secretaries of State for Education and the Department of Work and Pensions. It looks at all the other big issues that are around in terms of poverty.
“Yes, it’s about the social security system, Universal Credit, but it’s also about housing, educational attainment, health inequalities, pay in the workplace, progression and skills. It’s about those underlying causes of poverty that are inherent in our society that we need to find a way to resolve once and for all.
“Having grown up on a council estate, I know that having that security of tenure of a house was the bedrock in which the family was built, and without that it’s difficult to see how you can get yourself out of poverty.
“Housing is devolved, but both governments are working very closely together to make sure that we can resolve the housing emergency that’s been declared across a lot of our local authorities.
“We’ve made a good start over the last 95 days. There will be bumps in the road, because these are fundamental challenges, but the whole culture of the new government is to try and resolve these issues.
“We want to make sure the system can work better, and joint working is really important in this area. There’s no reason why Social Security Scotland and the DWP can’t work jointly in terms of the delivery of social security, to make sure that we get the best out of both systems for the benefit of everyone who needs to access that system.
“Regarding the low update of benefits by ethnic minorities, I think that’s a huge challenge for us. Not just finding those individuals and families, but actually being able to engage with them and get them what they deserve to be claiming. That’s a huge battle for us all to try to work together and resolve.
“We’ve got four big priorities as a new government and as a Scotland Office. Growth is the number one priority, but that also feeds into our green agenda, which is our second priority. Our third one is Brand Scotland to try and increase our exports, to improve our businesses and create more jobs. And the fourth one, which attached the first three, is the eradication of poverty.
“That’s something that myself and Ministerial colleague Kirsty McNeill are fundamentally committed to doing. We can only do that by all of us – devolved governments, the UK Government and organisations like JRF working together. We must find ways we can not only make the system better, but make sure that those who require access to the system, get access to that system and get the funds and support they deserve.
“There’s a huge amount of work to be done and this report gives us that very sobering starting point.”
On 7 October, we’ll be launching our Poverty in Scotland 2024 report.
A key event in annual Challenge Poverty Week, this year’s report looks in detail at how the social security system is impacting on households in Scotland, as well as offering an overview of poverty rates in Scotland for different demographic groups.
Social security is an area where both the UK and Scottish Governments can have a huge positive impact on people’s lives. But how can policymakers in Holyrood and Westminster make the necessary changes to reduce the hardship faced in Scotland?
Find out at our launch event, available to join in person and online!
Technology and Innovation Centre, University of Strathclyde, 99 George St, Glasgow, G1 1RD
Technology and Innovation Centre, University of Strathclyde, 99 George St, Glasgow, G1 1RD
