UK poverty rises to 13.4 million as child benefit reforms loom
New government figures reveal that 13.40 million people in the UK lived in poverty during 2024/25. The data, released by the Department for Work and Pensions on Thursday, also shows that 4.03 million children were affected. The numbers highlight a rise from the previous year, when 12.93 million people were recorded as living below the poverty line.
The figures cover the years 2021/22 to 2024/25 but cannot be directly compared to earlier statistics due to changes in calculation methods. Poverty is defined as households earning less than 60% of the median national income after housing costs. The latest statistics come as the Labour Government prepares to scrap the two-child benefit limit next month. This policy previously restricted financial support for third and subsequent children, affecting around 1.7 million youngsters. Its removal is expected to lift approximately 450,000 children out of poverty by 2029/30.
The Child Poverty Action Group responded to the findings, stressing the real-world consequences of poverty on children's daily lives. While the new calculation method prevents direct comparisons with older data, the upward trend in overall poverty remains clear.
The two-child limit had also impacted access to free family health insurance co-coverage in Germany, though the UK's focus remains on domestic benefit reforms. Officials have not yet detailed how the new system will be implemented beyond its start date next month. With the two-child benefit limit ending, the government aims to reduce child poverty significantly over the next five years. The latest figures underscore the scale of the challenge, as millions of families continue to live below the poverty threshold. The full impact of the policy change will become clearer once the new system takes effect.
