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Monday, Mar 31, 2025

Child Poverty in the UK Reaches Record High Amid Economic Strain

Child Poverty in the UK Reaches Record High Amid Economic Strain

Data reveals 4.45 million children living in poverty, with alarming projections for the future.
The number of children living in poverty in the United Kingdom has reached a record high, with the latest statistics indicating that approximately 4.45 million children are in households defined as having relative low income after housing costs.

This figure, reported by the Department for Work and Pensions (DWP) for the year ending March 2024, marks the highest level of child poverty since records began in 2002/03, increasing from an estimated 4.33 million in the previous year.

A household is classified as being in relative poverty if its income falls below 60% of the median income, adjusted for housing costs.

In light of these figures, various charities and advocacy groups have expressed concern over the impacts of recent welfare reforms and proposed cuts.

Save the Children described the current child poverty statistics as “a source of national shame” and warned that without prompt intervention, this could mark a significant increase in child poverty under the Labour government.

Their remarks follow the Government’s own impact assessment, published the day prior, which projected that welfare reforms could push an additional 250,000 people, including 50,000 children, below the poverty line by the fiscal year 2029/30.

Chancellor Rachel Reeves defended the government's strategy, asserting that efforts to enhance employment opportunities will lead to higher wages, thereby alleviating poverty levels among families.

However, anti-poverty campaigners have urged for the reconsideration of the two-child benefit limit, implemented in 2015, which restricts tax credits and universal credit for families to the first two children.

They insist that this policy should be reformed as part of the forthcoming child poverty strategy, set to be released in spring 2024.

Additionally, the DWP data highlighted significant levels of material deprivation among children, with an estimated 28% living with inadequate access to essential items and activities, such as three meals a day and opportunities for outside school activities.

Furthermore, nearly 18% of children experienced food insecurity, a record high since household food security tracking began in 2019/20.

Affiliated organizations, including the End Child Poverty coalition, have called the latest data a “stark warning” for the government and a deviation from the change expected by voters.

Figures from Oxfam indicated that 30.5% of children are currently classified as living in poverty, a slight increase from 29.9% in the previous year.

On the broader scale of poverty in the UK, the total estimated number of people living in poverty has shown a slight decline, with approximately 14.25 million people recorded in 2023/24, down from 14.32 million in the preceding year.

Notably, the data indicates a decrease in the number of working-age adults in relative low income households and a stable count of pensioners in similar circumstances.

In a related context, the Public Accounts Committee has urged the government to enhance its response to rising energy prices, which have placed additional financial burdens on households.

The report confirms that electricity bills in the UK remain significantly higher than those in comparable countries, leading to financial strain for many families.

Over 2.73 million households were classified as being in fuel poverty in England as of last year, illustrating the ongoing challenges posed by high energy costs amidst a broader cost-of-living crisis.
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