More than 13 million living in poverty, government figures show

Newly released government data indicates that the number of people living in relative poverty within the UK increased by 500,000 in the year leading up to March 2025. This now brings the total to 13.4 million individuals classified under this measure, which notably includes four million children. Among pensioners, those living in relative poverty rose from 1.49 million to 1.69 million during the same period.

Relative poverty is defined as living in a household with an income below 60% of the median national income. Work and Pensions Minister Diana Johnson described these poverty levels as “wholly unacceptable,” emphasizing that the government is implementing “robust action to change the course.” Despite the rise in absolute numbers, the proportion of people in poverty grew marginally from 19% to 20% of the population between 2023/24 and 2024/25.

Peter Matejic, chief analyst at the Joseph Rowntree Foundation, commented on the figures by stating, “The latest statistics show overall poverty rose slightly and there was little change in child poverty in the first year of the Labour government.” He expressed optimism that the removal of the two-child benefit limit, planned for April 2026, will lead to reductions in child poverty but cautioned that “far too many families are still in poverty.” Meanwhile, the Institute for Fiscal Studies noted that changes in the numbers were not “statistically significant.” Prime Minister Sir Keir Starmer has highlighted reducing child poverty as a top priority for his government by the 2029 election.

For the first time, these poverty estimates have been compiled using a new method which the government asserts is more accurate. This involves incorporating precise data on benefits received, correcting for income under-reporting in the Family Resources Survey. As a result, past figures have been revised downward; notably, the number of children living in relative poverty last year is now 400,000 lower than previously estimated. The overall count of individuals in poverty has similarly been adjusted—for 2023/24, the figure was reduced from 14.25 million to 12.93 million.

Ben Gregg, head of welfare at the Centre for Social Justice, criticized the reliance on relative income measures, stating, “A 2% fall in muddled estimates means nothing for those who actually lack life’s basic necessities,” and highlighted the plight of the 1.5 million children in workless households who face a far greater risk of deprivation. He underscored the importance of focusing on work as the most sustainable path out of poverty. Though the revisions are unlikely to alter official government projections, current policies—including scrapping the two-child benefit cap—are expected to lift around 500,000 children out of relative poverty by 2030.

The policy to remove the benefit cap, which limits claims on universal credit or tax credits to the first two children, will take effect in April and is forecast to cost £3 billion annually by 2029-30. This move was backed by the Labour government under pressure from within its own ranks but has met with criticism from some opposition figures. Conservative leader Kemi Badenoch argued that benefit recipients “should have to make the same choices on having children as everyone else.” In defense, Chancellor Rachel Reeves said the cap “pushes kids into poverty more than any other” and has had “almost no difference to the size of families.”

Further data reveals that 24% of children, approximately 3.51 million, live in material deprivation. This classification is based on a set of criteria developed by the Department for Work and Pensions, including access to essentials such as a damp-free home, the ability to pay bills without sacrificing necessities, reliable internet and computer access, and contents insurance. Specifically for children, material deprivation also encompasses having a suitable place for homework, receiving three meals daily, and possessing age-appropriate toys

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