According to a new report published today by the Joseph Rowntree Foundation (JRF), the level of ‘extreme poverty’ in the UK has reached its highest level in three decades. Around 6.8 million people — almost half of all those living in poverty — have incomes significantly below the poverty line, making their situation worse than at any time since records began in 1994/1995.
‘Extreme poverty’ is defined as household income after housing costs being less than 40% of the national median income. For a couple with two young children, this equates to approximately £16,400 per year. In 2023/2024, the proportion of people in this category rose to 10% of the population, compared to 8% in the mid-1990s.
JRF Chief Analyst Peter Matejic noted: ‘Poverty in the UK not only remains widespread but has become deeper and more damaging than at any time in the last 30 years.’ Although the overall poverty rate has fallen slightly from 24% in 1994/1995 to 21% today (around 14.2 million people), the poorest families continue to become poorer.
The report highlights additional signs of a deepening crisis:
The average person living in poverty lives 29% below the poverty line (compared to 23% in the mid-1990s).
The number of people experiencing food insecurity has increased by 2.8 million in two years.
In 2022, around 3.8 million people (including 1 million children) experienced destitution, when it is impossible to meet basic needs for food, warmth and hygiene — 2.5 times more than in 2017.
The authors of the report call on the government to take urgent action, including reforming the social security system and supporting the most vulnerable groups. Despite some positive steps, such as removing the cap on benefits for two children, experts warn that without further action, poverty will continue to deepen.