Tag: Poverty

Tax Justice Scotland: A fair wealth tax could raise almost half a billion pounds a year from Scotland’s 10 richest families alone

New report reinforces case for stronger wealth taxes as a key building block of wider package of UK and Scottish fair tax reforms

A new report for Tax Justice Scotland has exposed Scotland’s staggering wealth gap with just five families holding more wealth (£19.3bn) than a quarter of Scotland’s population with the least wealth combined (£18.9bn).

The news comes as campaigners, frontline delivery organisations, academics, trade unions and others gather in Edinburgh for a major tax justice conference to explore the urgent need for a package of fair improvements to the tax systems at Scotland, UK and global levels.

The report, Taxing Wealth for a Fairer and Greener Scotland, produced by the Scottish Trade Union Congress (STUC) on behalf of the campaign, makes clear that fairer taxes on wealth at UK and Scotland levels must be at the heart of this package of reforms to invest in and drive progress towards a fairer, greener and more prosperous future.

Tax Justice Scotland says improved wealth taxation is only one part of a fairer tax system and is today also challenging all political parties in Scotland to outline detailed proposals for using the powers of the Scottish Parliament to improve devolved and local tax systems. 

The STUC analysis highlights the extreme end of wealth inequality after official data showed the wealthiest 2% of Scottish households have more wealth than the poorest 50% combined.

The report shows that the fortunes of Scotland’s very wealthiest people are surging far faster than people’s pay packets. Between 2024 and 2025, the combined wealth of Scotland’s ten richest families shot up by almost 8%, outstripping average earnings growth (5.9%).

Incredibly, the five richest families in Scotland are estimated to have more wealth (£19.3bn) than the Scottish Government collected in Income Tax (£19bn) last year. 

For illustrative purposes, the STUC analysis shows that a modest annual wealth tax of just 2% on all those with assets of more than £10 million could raise nearly half a billion pounds (£492 million) from Scotland’s 10 richest families alone, enough to pay for 12,000 new nurses, or 11,000 new teachers, or to double the Scottish Child Payment and lift more than 30,000 children out of poverty.

Given such a wealth tax would apply to all those with assets of more than £10 million in Scotland, it would raise even more.

Roz Foyer, General Secretary of the STUC, said on behalf of Tax Justice Scotland: “This research lays bare the shocking concentration of wealth in Scotland. While families across the country are struggling to pay their bills, a handful of the super-rich are lining their pockets with more and more money.

“It doesn’t have to be this way: fairly taxing this eye-watering wealth could, according to STUC research, mean more 12,000 new nurses in hospitals, 11,000 more teachers in classrooms or to double the Scottish Child Payment and lift more than 30,000 children out of poverty

“Politicians across the UK should be in no doubt that it’s their dithering and delay that is deepening the crisis within our communities and public services. The powers to make a radical change to our tax system are at their disposal. The excuses must end. Scotland can work for everyone, not just the richest few. It’s time that work was started without equivocation.”

Tax Justice Scotland believes a series of tax reforms are needed to deliver the investment Scotland needs, while incentivising positive behaviours, to tackle poverty, strengthen public services, cut emissions and support fair work, while reducing the many forms of inequality that persist, including gender and economic inequality.

The campaign says this package of reform is essential to building a fairer, greener and more prosperous future for everyone in Scotland. While, over time, raising enough revenue is likely to require broad-based tax increases – fairer wealth taxation is vital.

As the Chancellor prepares her autumn Budget, campaigners point to growing momentum behind fairer taxes, with 68% of people in Scotland thinking the very richest should pay more. Over three-quarters (79%) of people in Scotland back a UK-wide wealth tax on the very richest people. 

Previous analysis has shown that the measure, alongside a series of other reforms to improve existing UK-level taxes on wealth, like increasing Capital Gains Tax and applying National Insurance to investment income, could raise up to £60 billion a year across the UK. 

A UK-wide wealth tax, if introduced, could help boost the Scottish Budget. But the STUC’s analysis shows that if the UK Government fails to act, the Scottish Parliament could use its own tax powers, with HMRC support, to introduce a locally-administered wealth tax.

The findings come against a backdrop of growing fiscal pressure: the Scottish Fiscal Commission has warned of a £4.7 billion shortfall in the Scottish Budget by the end of the decade, alongside mounting longer-term challenges. The Commission is urging all parties to work together before and after the Scottish election to address these challenges.

While making the case for improved taxation on all forms of wealth, Tax Justice Scotland says improving tax on property wealth in Scotland is particularly essential. Campaigners say the outdated and unfair Council Tax, still based on property values from 1991, must finally be replaced with a reformed property tax that reflects today’s housing wealth. 

Property wealth has surged by almost £100 billion in just ten years, yet the Council Tax system remains frozen in time, letting those in the most expensive homes pay far less than they should, while many others are left paying over the odds.

Tax Justice Scotland say replacing Council Tax, alongside wider reforms to better tax the wealthiest and to build upon modest but progressive changes to Income Tax in Scotland, would collectively make sure those with the broadest shoulders contribute a fairer share. 

Campaigners emphasise that while tax isn’t a silver bullet, it can play a much bigger role in building the Scotland we want to see.

Jamie Livingstone, Head of Oxfam Scotland, a member of Tax Justice Scotland, said: “Our tax system can do so much more to help build the country the people of Scotland want, but, right now, it’s stacked in favour of the wealthy.

“It’s time to fix the system; and that must include better taxing wealth right across the UK and, in Scotland, finally replacing the outdated Council Tax.

“With the Scottish election fast approaching, all political parties have a clear choice: defend a broken system that protects the richest while short-changing critical priorities or back a fairer one that delivers a fairer, greener and more prosperous country for all of us.”

STUC-Taxing-Wealth-for-a-Fairer-and-Greener-ScotlandDownload

Read the report Taxing Wealth for a Fairer and Greener Scotland here: 

https://bit.ly/TaxingWealth 

SCOTLAND DEMANDS BETTER on TAX:

Scotland-Demands-Better-on-TaxDownload

Challenging poverty with ‘family friendly policies’

FM commits to putting more money in Scots’ pockets and urges UK Government to act

Challenge Poverty Week – The Poverty Alliance 

First Minister John Swinney has said the Scottish Government is committed to putting “more money in people’s pockets” through policies that alleviate financial pressures on families as Challenge Poverty Week begins.

The First Minister said the Scottish Government’s cost of living guarantee, which includes free bus travel for 2.3 million people, more than £6,000 in early learning and childcare support for each eligible child, free prescriptions and other measures, is delivering real savings for families across the country.  

The guarantee sits alongside wider support, such as the Five Family Payments, including the Scottish Child Payment, which are reducing poverty. 

The proportion of Scottish children living in absolute poverty has reached its lowest level in 30 years and the latest figures (for 2023-24) show that the rates of both relative and absolute child poverty in Scotland were 9 percentage points lower than the UK average.   

Scottish Government policies are estimated to keep 70,000 children out of relative poverty in 2025-26. This impact is projected to grow over time to reach 100,000 children by 2028-29 – in part owing to plans to mitigate the UK Government’s two-child limit, which should keep 20,000 children out of poverty next year.  

Mr Swinney said: “Tackling child poverty is this government’s defining mission and our determination is backed up by a commitment to put more money in people’s pockets and deliver real savings to support families.   

“There are fewer children in poverty in Scotland than the rest of the UK because we have made bold policy choices backed by an unwavering resolve. 

“The Scottish Child Payment was benefitting around 322,000 children and their families as of the end of June. Our free school meals programme is providing nutritious meals to more than 230,000 primary school pupils. We have cut costs for commuters by scrapping peak rail fares. Some 2.3 million people travel free on buses. And we’re mitigating the two-child limit early next year.  

“The UK Government, if it is serious about tackling poverty, must match our ambition and, at the very least, fully scrap the two-child limit so that a generation of children don’t have their opportunities limited by inaction. 

“But scrapping the two-child limit should also be done alongside the removal of the benefit cap. It is unconscionable to me that the UK Government could fail to address this – it must scrap both punitive policies.  

“If it does, and it matches the Scottish Child Payment and introduces an Essentials Guarantee, our modelling estimates that the UK Government could reduce relative child poverty in Scotland by 100,000 children next year.   

“We have made a difference through bold, game-changing policies. The blueprint is there. It is time for the UK Government to act.”

Challenge Poverty Week – The Poverty Alliance 

The cost-of-living guarantee: 

  • Lower income tax than in England for the majority of workers 
  • Continuation of free prescriptions and free eye appointments 
  • Free bus travel for 2.3 million people  
  • Scottish undergraduate students will continue to pay no tuition fees 
  • Funded childcare hours, which would otherwise cost families more than £6,000 a year per eligible child. 
  • Free school meals, which save the average family who take up the offer £450 per child per year, will be expanded, and more breakfast clubs introduced. 
  • Delivering Pension Age Winter Heating Payments for eligible Scottish pensioners in 2025-26
  • Scrapping peak rail fares 

The Five Family Payments include: 

  • The Scottish Child Payment, which is a weekly payment of £27.15 for each eligible child under 16 years of age. 
  • The Best Start Grant includes three payments designed to support families at different stages, including during pregnancy and when a child starts school, including: 
  • the Pregnancy and Baby Payment, which is a payment of £767.50 on the birth of the first child and £383.75 on the birth of any subsequent children 
  • the Early Learning Payment, which is a payment of £319.80 per child for children between 2 and 3.5 years old to support child development 
  • the School Age Payment, which is a payment of £319.80 per child to help with the costs of preparing for school 
  • Best Start Foods, which is a prepaid card to buy healthy foods for eligible pregnant women and families with children under the age of three, with a minimum payment of £5.40 a week. 

The Child Poverty Action Group estimates that the two-child limit on benefits is pulling 109 more children into poverty every day.

Latest figures on child poverty rates in Scotland compared to rest of UK

Child poverty summary showing the proportion of Scottish children living in absolute poverty has reached its lowest level in 30 years

Households with children in the poorest 10% of households are also estimated to be £2,600 a year better off in 2025-26. 

Evaluating efforts to tackle poverty

New report highlights the impacts of Scottish policies

Scottish benefits are easing the cost-of-living burden for families according to a new evaluation.

The Scottish Centre for Social Research surveyed people in receipt of any of the Five Family Payments, a group of benefits designed to tackle poverty and to improve household finances.

Findings show the payments have a positive impact on recipients’ overall finances and have helped to reduce material deprivation and food insecurity for low-income families. The majority of Scottish Child Payment and Best Start Foods recipients agreed the payments meant they did not need foodbanks.

Feedback also shows the majority of Best Start Foods recipients, who receive a pre-paid card to purchase healthy food, reported that the card enabled their families to have healthy meals more frequently. 

Other impacts include a reduction to household debt and borrowing and more children being able to undertake extra-curricular activities, like sport, music or drama.

Recipients also commented that the automatic payment system reduces worry and stress.

Social Justice Secretary Shirley-Anne Somerville met some impacted families at Brunstane Primary School in Edinburgh.

Ms Somerville said: “We want every child to have the best start in life, but we recognise that the cost of living continues to have a negative impact on families across the country.

“It is a moral imperative to offer the best support we can, and I’m pleased that this work found an array of positive, meaningful impacts.

“But we are not letting up. We know there is more to do, which is why, as an example, we are launching the new Two Child Limit Payment in March, which will benefit the families of 43,000 children next year.

“And in the face of challenging economic headwinds and cuts to the UK welfare system, I want to reassure families that our support will continue. No child, nor family, will be left behind by the Scottish Government.”

One parent, Emma Hunter from Magdalene, said: “We are so grateful for the support we received with the healthy start vouchers, school uniforms and child payment.

“It has been such a huge help  in easing the financial burden of starting a family and it has made a real difference to our lives.”

Evaluation report

Edinburgh & Lothians Greenspace Trust speak out on impact of EIJB cuts

Edinburgh & Lothians Greenspace Trust, working alongside our partners in the Thrive Collective, is deeply disappointed by the recent decision of the Edinburgh Integrated Joint Board (EIJB) to end the Thrive contract for Physical Activities and Greenspaces from the end of November.

Through Thrive, we and our partners have worked in close collaboration with communities, health services, and local organisations to provide inclusive opportunities that improve physical and mental wellbeing.

We are proud of the collective impact that this work has had for people across Edinburgh, particularly those experiencing health inequalities.

This follows the earlier decision to withdraw grant funding for our Healthy Lifestyles work in South Edinburgh. Together, these cuts represent a significant reduction in support for programmes that enable communities across the city to access the health and wellbeing benefits of nature, physical activity, and local greenspaces.

The decision will have a real impact on the 1250 participants who rely on these programmes to support their physical health, mental wellbeing, and sense of social connection. Many of the people we work with face health inequalities and barriers to accessing mainstream services, and these activities have provided an essential lifeline.

Charlie Cumming, ELGT Chief Executive, confirmed the loss of this funding will directly affect our capacity to deliver dedicated programmes that improve health through engagement with local greenspaces.

It will also reduce the resources that are community-based, accessible, and effective alternatives to clinical treatment—helping people recover and build resilience outside of primary care settings.

Despite this setback, ELGT remain committed to championing greenspaces and active lives as vital to Edinburgh’s health and wellbeing.

We will continue to explore new ways of sustaining this essential work and will seek to secure funding that ensures these opportunities remain accessible to the communities who need them most.

We would like to sincerely thank all participants, volunteers, and partner organisations who have engaged with us.

Your commitment and enthusiasm highlight just how much this work matters and the difference it makes across the city.

EDINBURGH & LOTHIANS GREENSPACE TRUST

Stark statistics highlight wealth gap

New statistics show average wealth remained stable, while wealth inequality remained high.

According to the latest data which covers the period during the pandemic, a typical household in Scotland had £239,500 in total wealth, similar to previous years.

A typical household in the wealthiest 10% of households had £1.3 million in total wealth, whereas a typical household in the least wealthy 10% of households had £7,600.

The least wealthy households rarely own property or have any private pension savings. Their wealth is mainly made up of the value of their possessions such as cars, furniture and clothing.

Wealth inequality is more severe than income inequality: the 2% of households with the highest incomes had 10% of all income, while the wealthiest 2% of households had 15% of all wealth.

Households that tend to be wealthier than others are higher income households, pensioner couples, and home owners. In contrast, households with below average wealth tend to be low income households, lone-parent and single working-age adult households, and those in rented housing.

A fifth of households had insufficient savings to keep them above the poverty line for a month should they lose their income. Three per cent of households were in unmanageable debt. Just over a third of households did not own any property, and a third of adults had no private pension savings.

The released figures were produced in accordance with professional standards set out in the Code of Practice for Official Statistics.

The full statistical publication: Wealth in Scotland 2006-2022

Committee concerns that new UC health claimants could face poverty

A new report from the Work and Pensions Committee has raised concerns that planned cuts to the health component of Universal Credit (UC health) will push disabled people into poverty despite the above inflation rise in the UC standard allowance. 

In its Pathways to Work report, the Committee repeated calls to delay planned cuts in UC health reform until the full impact of the changes are better understood.

The Committee wrote to the Secretary of State in May calling for a pause of the planned reforms to UC health and Personal Independence Payments (PIP) and called for PIP policy to be co-produced with disabled people. 

The Government subsequently dropped all the PIP proposals and agreed to co-produce a new PIP assessment process with disabled people and their organisations in a review led by Sir Stephen Timms.

However, under the planned reforms to UC health, from April 2026 although all existing claimants and new claimants with severe or terminal conditions will be protected, other claimants assessed as having limited capability for work and work-related activity will see their awards halved from £423.27 to £217.26. 

This is part of the Government’s drive to get more people off welfare and into work, as described in their Pathways to Work Green Paper.

Although the intent to safeguard these people was welcomed, MPs on the Committee raised concerns that some conditions, particularly serious mental health conditions, might not be included under the severe condition criteria; this also applies to people with fluctuating conditions.

The Committee also asked the Secretary of State why an assessment of safeguarding risks had not been conducted before the Green Paper was published. 

Committee Chair Debbie Abrahams said: “We welcome the concessions that the Government made to the UC and PIP Bill (now the UC Bill); but there are still issues with these welfare reforms not least with the cut in financial support that newly sick and disabled people will receive.

“The Government’s own analysis published in March indicates that from next April approximately 50,000 people who develop a health condition or become disabled – and those who live with them – will enter poverty by 2030 as a result of the reduction in support of the UC health premium.

“We recommend delaying the cuts to the UC-health premium, especially given that other policies that such as additional NHS capacity, or employment support, or changes in the labour market to support people to stay in work, have yet to materialise.

“We agree in a reformed and sustainable welfare system, but we must ensure that the wellbeing of those who come into contact with it is protected.

“The lesson learned from last month should be that the impact of policy changes to health-related benefits must be assessed prior to policy changes being implemented to avoid potential risks to claimants.”

World’s largest fund of its kind to support vulnerable families

  • Chancellor launches new £500m Fund to break down barriers to opportunity for up to 200,000 vulnerable children and young people and deliver Plan for Change.
  • World’s largest fund of its kind will boost pupil achievement and could fund programmes to reduce reoffending or provide specialist workers for children struggling with exclusion, mental health or crime.
  • Better Futures Fund will run for ten years, with plans to raise another £500 million from local government, social investors, and philanthropists on top of government’s funding
  • The launch is backed today by groups including Save the Children UK, The King’s Trust and Oxford University’s Blavatnik School of Government.

Struggling and vulnerable families and children are to be given a better start in life after a new government fund was announced today (Monday 14 July), which will provide them with the support and funding needed to access a better education, a safe home, and the caring supportive environment they need to flourish.

The Better Futures Fund will support up to 200,000 children and their families over the next ten years by bringing together government, local communities, charities, social enterprises, investors, and philanthropists to work together to give children a brighter future.

It could fund providing support in schools to improve attendance, behaviour and overall achievement of pupils, intervening to free children from a life of crime, and offering employment support to secure their futures.

The fund, which is the largest of its kind in the world, will be launched by the Chancellor of the Exchequer Rachel Reeves at a visit to a school today in Wigan, hosted by the charity AllChild.

It could fund providing support in schools to improve attendance and behaviour, intervening to free children from a life of crime, and offering employment support to secure their futures.

By investing in early support to tackle challenges like school absence, addiction and re-offending, the fund will help give children the stability and opportunity they need to thrive – delivering on a key part of the Prime Minister’s Plan for Change to give every child the best start in life.

It comes ahead of the government hosting the first Civil Society Summit this week, where the government will set out a comprehensive plan on how this government will partner with experts from outside the traditional corridors of power to create solutions that work for real people – all through the principles of fairness, collaboration and trust.

Chancellor of the Exchequer Rachel Reeves said: “I got into politics to help children facing the toughest challenges. This fund will give hundreds of thousands of children, young people and their families a better chance. 

“For too long, these children have been overlooked. Our Plan for Change will break down barriers to opportunity and give them the best start in life.”

Culture Secretary Lisa Nandy said: “This groundbreaking Better Futures Fund represents a major step in partnering with the impact economy, which has long played an important role in strengthening communities and driving inclusive growth.

“As part of the Plan for Change, we’re bringing together government, local authorities, charities, social enterprises and philanthropists to create a powerful alliance that will transform the lives of vulnerable children and young people.

“We owe them the best start in life. Together we will break down barriers to opportunity, ensuring those who need support most aren’t left behind and have the chance to reach their potential.”

Social Outcomes Partnerships have already been used with success across the UK, with over 180 commissioners using the model across the country. The Greater Manchester Better Outcomes Partnership (GMBOP), for example, works with young adults in the Greater Manchester area who are at risk of homelessness.

AllChild’s projects have already halved persistent school absences, and 80% of children have improved emotional wellbeing. Other programmes like the Skill Mill offer paid work experience and qualifications, reducing reconviction rates from 63% typically to 8% and three quarters of those in the programme progress to further employment, education or training.

This fund is a big step in the government’s work with the impact economy – unlocking extra resources from philanthropy, social investors and businesses to tackle urgent social challenges. Today’s announcement comes as the government’s Child Poverty Strategy is to be published in autumn to ensure it delivers fully funded measures that tackle the structural and root causes of child poverty across the UK.

The launch is backed today by groups including Save the Children UK, The King’s Trust and Oxford University’s Blavatnik School of Government.

Today’s announcement is informed by consultation with the Social Impact Investment Advisory Group and other representatives from civil society, purpose-driven business, and local government.

Over the coming months the UK Government will build on this and develop a strategic approach to working with the impact economy, who have long played an important role across the UK economy in unlocking innovation, driving inclusive growth and strengthening community resilience.

Chief Secretary to the Treasury Darren Jones said: “Partnering with impact capital to tackle child poverty was a personal priority for me coming into government – which is why I set up the Social Impact Investment Advisory Group to advise on the development of this brilliant fund, which we’ve been delighted to support as a government.

“I’d like to thank Dame Elizabeth Corley for chairing the group and all the members for their hard work.”

Louisa Mitchell MBE, Chief Executive Officer, AllChild said: “I warmly welcome the government’s Better Futures Fund as a pivotal step toward transforming how we support children and families across the country.

“It’s vital that children engage with the right support and opportunities, at the right time, in the right way. Holistic support that is rooted in each child’s local community, builds on their strengths, and places trust and relationships at the heart of delivery.

“I hope this fund will be a catalyst for a new way of working – one which prioritises prevention, shared accountability for locally identified outcomes, and genuine cross-sector partnerships. This is how we can ensure every child no matter where they live has the support and opportunities they need to flourish.”

Richard Rigby, Head of UK Government Affairs, The King’s Trust said: “At The King’s Trust, we know that timely support can change the course of a young person’s life. Potential is everywhere but opportunity is not.

“The Better Futures Fund is an investment in the potential of young people who are too often left behind. We welcome this commitment to early intervention and collaboration with organisations like ours to tackle inequalities and help young people build brighter, more secure futures.

“By getting behind young people, we can all help to make the UK a healthier, wealthier, more positive and cohesive place.” 

Further details on the fund will be set out in due course. It will be delivered by the Department for Culture, Media and Sport.

Edinburgh to launch innovation team to help reduce poverty and reach net zero

Edinburgh is one of 19 new local authorities joining the international Bloomberg Philanthropies i-team initiative, which provides municipalities around the world with support and expertise to tackle pressing local challenges.

The City of Edinburgh Council today announced plans for an Innovation Team which will work towards tackling the city’s ambitions of reaching net zero and ending poverty.

The ‘i-team’, supported by Bloomberg Philanthropies, will include three specialised staff charged with helping the Council and civic and community-based partners design and implement services that improve people’s lives.

They will receive technical assistance from regional and global specialists, and benefit from learnings from peers in local authorities across the region and around the world.

City of Edinburgh Council Leader Jane Meagher said: “Edinburgh is one of the most successful cities in the world and yet we face unprecedented pressures. Our population growth, and appeal as a fantastic place to live and visit, makes it challenging to provide the best quality housing and support to residents who need it most.

“Likewise, Edinburgh’s world-famous environment, both built and natural, needs to be managed sustainably and protected from the effects of climate change.

“The support from Bloomberg Philanthropies’ international i-team initiative will provide a huge boost towards our aims of tackling poverty and hitting net zero, by helping us to establish a brand-new innovation team within the Council. I look forward to working with this team, and all our partners, as we work to deliver a fairer and stronger capital city.”

James Anderson, who leads the Government Innovation program at Bloomberg Philanthropies, said: “Realising efficient, effective government is an inside job—and the Innovation Teams we support around the world are critical to building that engine within the city halls they serve.

“We are glad to expand this model to 19 new municipal teams in Europe, who will join the growing number of public officials working locally, creatively, and ambitiously to break down silos, break through problems, and deliver results residents see and feel.”

To date, the Bloomberg Philanthropies i-team initiative has reached over 100 cities across 16 countries and four continents—representing more than 100 million residents—and inspired hundreds of other local governments to embrace innovation systems and practices.

Charities supporting three times as many people with essential aid

Sector faces increased financial pressure

The Charity Commission has published its annual public and trustee research, revealing a stark long-term rise in people seeking charitable support amid continued high levels of public trust in charities.

The Commission’s annual survey of public attitudes to charities reveals that in the last year 9% of people in England and Wales received food, medical or financial support from charitable organisations, compared to just 3% five years ago.

While demand for such services has risen dramatically, the Commission’s research shows that charities themselves are feeling increased financial pressure.

Over the same five-year period, the proportion of people who said they’d donated to, or raised funds for charity in the past year, fell from 62% to 48% as households have felt the pinch.

Nearly half of charity trustees said their charity had been forced to make changes as a result of cost-of-living pressures in the past year (46%). This included stopping some services (11%) and using more of their reserves than expected (17%).

Against the backdrop of these challenges, public trust in charities remains high, with almost 60% of people reporting high trust in charities – placing them second only to doctors among trusted institutions.

The research indicated that public confidence in charitable spending has improved, with over 6 in 10 people believing donations are reaching the intended cause. This confidence has risen by 7 percentage points in 12 months.

In other findings, the research suggested that charities’ campaigning activities are unlikely to diminish public support in their work – and for nearly half, may increase it. Fewer than 1 in 20 said they would be less likely to support a charity that campaigned, suggesting continued public support for charities that advocate for their beneficiaries.

In the Commission’s annual survey of trustees, also released today, there are signs of slight improvement in banking services, after the regulator and its partners highlighted persistent issues for many charities.

The research found that 38% of trustees reported problems with their charity’s bank, which is down from 42% in 2024, but remains an issue for many.

Charity Commission Chief Executive, David Holdsworth, said: “These findings highlight the central role of the charitable sector at a time of significant pressures in wider society.

“Charities are providing a vital lifeline to ever more people, while simultaneously navigating their own financial challenges as donors feel the pinch.

“It’s encouraging to see improved public confidence in charitable spending, though there is no room for complacency. Charities must continue to keep their charitable purposes central to everything they do because this remains a key driver in maintaining public trust.

“The data paints both a challenging picture and a hopeful one – showing a sector that continues to be a bedrock of support and community for people across the country as well as overseas, despite navigating unprecedented demand in an increasingly unstable global landscape.”

The full findings can be found on gov.uk.

Children in England are living in ‘Dickensian levels’ of poverty without their basic needs being met, Children’s Commissioner warns

  • New report reveals harrowing accounts from children facing unsafe housing, food insecurity and barriers to education – with many normalising deprivation
  • Children express clear understanding of systemic failures, calling for more accessible and compassionate support and services
  • Urgent reforms across housing, transport, education and community safety needed to break the link between a child’s background and future opportunities

Children in England are facing ‘Dickensian levels’ of poverty, going without basic needs like heating, a place to wash, somewhere to eat breakfast, or safe transport to school.

Frank testimonies from school-age children, shared in new research by the Children’s Commissioner, expose a crisis of hardship, shame and systemic failures and illustrate the stark reality of what it means to live on a low income in 2025.

The Children’s Commissioner Dame Rachel de Souza has set out practical recommendations for tackling – and ending – child poverty based on the insights children have shared with her.

These have been shared with the government’s Child Poverty Unit to shape its forthcoming strategy and ensure it reflects the many ways children experience poverty: going hungry, feeling unsafe at home, travelling hours to get an education and being stigmatised for having less that their peers.

‘Every time I got [food packages] the food was always out of date and mouldy…I know I’m poor but I’m not going to eat mouldy food.’ – Boy, 15

‘The system’s so muddled up that they make you feel greedy for even wanting it…. it’s our rights. We didn’t choose to be poor.’ – Boy, 18

‘Some of it [free school meals] looks like food you wouldn’t feed to a dog’. – Boy, 15.

‘Sometimes if I have the money, I catch the bus, but sometimes I have to walk and I just feel very uncomfortable… at nighttime.’ – Girl, 14.

Recommendations include the introduction of a ‘triple-lock’ on all child-related benefits, to help alleviate the severe conditions children and their families are living through, and to deliver greater financial security for hundreds of thousands of children. All four UK Children’s Commissioners – from England, Scotland, Wales and Northern Ireland – have jointly backed this call, alongside a repeated call to end the two-child benefits limit to prevent hundreds of thousands of children being driven into poverty.

Other proposals from Dame Rachel de Souza include free bus travel for all school-age children, priority for housing to be given to children in low-income households, auto-enrolment for free school meals for all eligible children, improved communication and data-sharing between schools, GPs and local authorities.

Children’s Commissioner Dame Rachel de Souza said: ““Since becoming Children’s Commissioner, I have been struck by the change in how children talk about their family lives over that four-year period. Issues that were traditionally seen as ‘adult’ concerns are now keenly felt by children, who see their parents’ worries and the struggles they face: the hours they work, the homes they live in and the ability to put food on the table.

“Children shared harrowing accounts of hardship, with some in almost-Dickensian levels of poverty. They don’t talk about ‘poverty’ as an abstract concept but about not having the things that most people would consider basic: a safe home that isn’t mouldy or full or rats, with a bed big enough to stretch out in, ‘luxury’ food like bacon, a place to do homework, heating, privacy in the bathroom and being able to wash, having their friends over, and not having to travel hours to school.

“Children spoke to me about the sense of shame that comes from knowing you have less – but, as one of the richest societies in the world, it is decision makers who should be ashamed that children are growing up knowing their futures are being determined by their financial circumstances.

“We have seen some positive steps by the government to get more money into families’ pockets – but we need leaders at every level: government, business, transport and every public service to commit to bold, practical measures that break the link between a child’s background and their opportunities.”

In interviews and focus groups with 128 children aged between six and 18, children didn’t talk about ‘poverty’ directly but were acutely aware they were growing up not having enough money to do the same things as their peers and feeling a sense of shame at being seen as ‘lesser’.

Dame Rachel’s report reveals key themes, including:

  • Everyday impact of poverty: Children spoke about their families going without heating, food, and other essentials, often accepting these hardships as normal. Many experienced poor-quality, overcrowded and unsafe housing, as well as frequent moves while facing long waits from housing providers and prolonged stays in temporary accommodation, leaving children with no stability or space to thrive, which impacted their wellbeing and education;
  • Food insecurity and health inequality: Rising costs mean many families have limited access to nutritious food, relying on food banks, school parcels or poor-quality free school meals, about which children raised concerns around the quality and stigma of receiving. Children also face long waits for healthcare and unequal access to mental health services, with a perception of a two-tier system, where those who can afford private care receiving faster treatment.
  • Barriers to education and opportunity: Children highlighted the cost of uniforms, limited transport meaning long walks or complicated commutes to school, and access to extracurricular activities as major obstacles. Schools play a crucial role in supporting children, but reported support was inconsistent. Limited career guidance and low pay were also cited as restricting the prospects for young people experiencing poverty.
  • Broken system and inaccessible support: Children showed a striking awareness of their family’s access to social security benefits, including the need for benefit rates to be increased. Many spoke of the need to make the system easier to navigate and with better access to services like housing, repairs, GPs, and school-based initiatives.
  • Unsafe and isolated communities: High crime, unsafe streets and unaffordable transport left children feeling vulnerable and cut off. Despite this, strong community bonds offer a sense of belonging and resilience in the face of hardship.

In response to children’s evidence, the Children’s Commissioner highlights the need for changes beyond the social security system to the public services that children rely on. Her recommendations include:

  • Uplifts to all child-related benefits on an annual basis as costs rise, so families can meet their children’s basic needs, and removing the two-child limit;
  • Housing reforms to ensure no child or family is housed in any B&B-type accommodation for more than six weeks. Children in low-income households should be prioritised for affordable housing and no child should ever be placed in temporary accommodation alongside other single adults;
  • Improved access to transport so as many children as possible benefit from free bus travel – as a minimum, all school age children in England should have free bus travel;
  • Improved oversight of Free School Meals, with better assessment and enforcement of school food standards to ensure all children receive nutritious, high-quality meals – and for all eligible children to be auto-enrolled to receive them;
  • Increased safety in communities, with visible reforms for children including prioritising the rollout of PCSOs, increased street lighting and more neighbourhood watch style initiatives in areas with children on low incomes.
  • Long-term vision for youth activities with children from low-income households front and centre of the government’s forthcoming National Youth Strategy, as well as a commitment to funding the Holiday Activities and Food programme beyond April 2026.

Children’s testimonies:

‘I would…change the amount of money people get from Universal Credit…because £920, is that enough for one month?’ Girl, 11.

‘In our area sometimes there’s stuff like robbing and sometimes there’s drunk people and stabbing … It’s not really a nice because sometimes it can be really dangerous… but sometimes it can be a nice merry community.’ Boy, 8.

‘Sometimes when I need to take a bath or have a shower, the water doesn’t really work sometimes… so sometimes when [children] don’t have enough water to take a shower, they always just have to go to school not clean and they didn’t shower.’ Girl, 10.

‘They’d make you walk in the cafeteria with everyone there, so everyone knows you’re poor because you have to wear a lanyard or a band on your wrist…Everyone had regular water bottles, but they had different ones for free school meals that were smaller than everyone else’s.’ Boy,18.

‘Sometimes when we go to my auntie’s house, she gives us food to take because she cooks out of home…that’s the only time I eat normal food and not take out.’ Boy, 13.

‘I remember when my sister was just born…you have to keep the house warm. But you can’t keep the house warm…because there was six of us in the house at the time…you’re trying to feed everyone, keep everyone warm and then pay for every expense around the house, so it’s quite a lot’. – Girl, 16.

‘[My mum’s] always encouraged me to reach out and try and find jobs or…some kind of income because we are quite low on the ground.’ Girl, 16.

‘I grew up in a household where my mum has [severe illness], so I’m a young carer, I have been since I was 8…I still can’t get carers allowance because I’m in full time education but the second I get in, I’m still doing all my jobs, still looking after them. What am I meant to do? Not go to college or uni? You have to give up your whole life just to care for your family, it’s all good but…you need a future.’ – Boy, 18.

‘In my house, the heating doesn’t work. Every time we [put the heating on] it’ll take like £10 a day from our electricity. And sometimes the electricity just turns off.’ Girl, 10.

‘It took [the council] three months to move us out, which was…so much stress …and the mould was making me so ill…We got home and there was a hole in our floor and the mould wasn’t done properly…It feels like you’re fighting a one-way battle because they they’re not actually doing what they can do to support us.’ Girl, 17.

‘There are a bunch of people who walk by going to a club – when they leave, they’re always drunk and chucking glass around.’ Boy, 10.

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