Summary
New government figures show that 13.4 million people in the UK are living in relative poverty, including four million children. The increase is half a million more than the previous year, but as a percentage of the population, it has only risen slightly. The government plans to remove the two-child benefit cap in 2026 to help reduce child poverty.
Key Facts
- The UK has 13.4 million people living in relative poverty, including four million children.
- The number of pensioners in relative poverty increased to 1.69 million.
- A household is in relative poverty if its income is below 60% of the average income.
- The poverty rate went up from 19% to 20% of the population from 2023/24 to 2024/25.
- The government plans to remove the two-child benefit limit starting in April 2026.
- New figures are based on a more accurate system that includes detailed benefit income data.
- The number of children in poverty last year was 400,000 lower than previously estimated.
- Prime Minister Sir Keir Starmer prioritized reducing child poverty before the 2029 election.
