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‘Very deep poverty’ in Britain hits worst level in 30 years, report says

Report reveals that nearly 7 million people are living on well below the UK median income as the nation’s poorest get even poorer

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A homeless person near Piccadilly Circus in central London in 2020. Poverty in Britain has deepened in recent years. Photo: AFP
Reuters

Poverty in Britain has deepened, according to a report released on Tuesday, with approximately 6.8 million ‌people now living in “very deep poverty”, the highest level in three ‍decades.

“Very deep poverty” refers to households with an after-housing-costs income below 40 per cent of the UK median, amounting to around £16,400 (US$22,446.68) a year for a couple with two young children.

The report by Joseph ⁠Rowntree Foundation (JRF), which conducts research aimed at solving poverty in Britain, said the overall poverty rate in the UK fell slightly from 24 per cent in 1994/95 to 21 per cent in 2023/24, but “very deep poverty” edged up from 8 per cent to 10 per cent, now accounting for almost half of ‍everyone in poverty.

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The report said child poverty has also climbed, with 4.5 million children ‍in poverty, rising for the third year in a row.

It follows Finance Minister Rachel Reeves’ November decision to scrap a two-child limit ‌on welfare payments in April, a move that officials estimate would cost £3.1 billion aimed ‍at reducing child poverty rates by increasing benefits for families.

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The cap, introduced by the Conservative government in 2017, has meant many low-income families do not receive further benefits when they have a third child or subsequent ‌children.

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