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UK poverty rises to 13.4 million as child hardship deepens in 2024/25

A record 13.4 million Britons now live below the poverty line—with children hit hardest. Will scrapping the two-child benefit cap turn the tide?

The image shows a graph depicting the number of poverty and poverty rates from 1959 to 2005. The...
The image shows a graph depicting the number of poverty and poverty rates from 1959 to 2005. The graph is accompanied by text that provides further information about the data.

UK poverty rises to 13.4 million as child hardship deepens in 2024/25

New poverty figures for the UK have been released, showing a rise in the number of people struggling financially. The Department for Work and Pensions published the data on Thursday, revealing that 13.40 million individuals lived in poverty during 2024/25. Among them, 4.03 million were children. The latest statistics define poverty as households earning less than 60% of the median national income after housing costs. This year's total marks an increase from 12.93 million people in the previous period. However, a recent change in calculation methods means direct comparisons with older data are no longer reliable.

The Labour Government has now abolished the two-child benefit cap, with the change taking effect next month. Officials estimate that removing this limit will lift around 450,000 children out of poverty by the end of 2029/30. Yet, the full impact of this policy shift will not appear in official statistics until 2026/27. In response to the figures, the Child Poverty Action Group highlighted the ongoing challenges faced by children in low-income families. They stressed the need for continued support to address the effects of financial hardship on young lives.

The removal of the two-child benefit cap aims to reduce child poverty over the next five years. While the latest data shows a rise in overall poverty, the Government's policy change is expected to bring gradual improvements. The next set of statistics in 2026/27 will provide clearer evidence of its effects.

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