The cost of living crisis continues to affect UK households. Here are the facts.

Poverty is profoundly rooted in the UK, meaning millions of families are struggling. As a result of the most severe impact of the cost of living on low-income households, more people are being forced below the poverty line.

According to government statistics, approximately 14.4 million individuals will live in poverty in the UK in 2021/22. That is roughly one in five individuals. Approximately 4.2 million adolescents are impacted. Before the cost of living crisis took over the nation and drove hundreds of thousands more people into poverty, these harrowing statistics were collected. 

Numerous individuals struggle to afford the necessities of life and rely on food banks to survive. Here, we explain the statistics and what the experts say must be done to reduce poverty in the United Kingdom. 

How many Brits live in poverty?

Approximately 14.4 million people lived in poverty in 2021/22. This includes 4.2 million minors, or nearly one-third (29%) of the population. In addition, 8.1 million persons of working age and 2.1 million seniors are poor.

The number of minors living in poverty has increased by approximately 600,000 over the past decade, while the number of senior citizens living in poverty has increased by approximately 500,000.

Overall, poverty rates in the UK have remained stable over three decades

There are also significant rates of poverty among employed individuals. 54% of those living in poverty are part of a family where at least one adult is employed. 71% of impoverished children belonged to working families.

Because of the cost of living, the contemporary poverty rate will likely be significantly higher. It causes hundreds of thousands more people to live in poverty. Between April 2022 and March 2023, the Trussell Trust received a record number of requests for assistance, with over 760,000 individuals turning to the organization’s food banks for the first time. That is greater than Sheffield’s population.

These numbers represent a portion of the situation. Without visiting a food bank, an increasing number of people who cannot afford food are skipping meals and starving themselves.

According to the Food Foundation, 9.3 million adults experienced food insecurity in January 2023. Approximately 3.2 million adults reported going an entire day without eating. 

The Resolution Foundation predicts 800,000 more people will be plunged into absolute poverty in 2023/24. Child poverty in 2027-28 is predicted to be the highest since 1998, with 170,000 more children in poverty than in 2021/22.

Why is there poverty?

Life circumstances, such as illness or unemployment, can result in poverty. However, it is primarily caused by structural and systemic issues, exacerbated by rising living costs, creating a cycle that traps people in poverty. This includes unemployment and low-paying, insecure employment. People who lack easy access to training or education may find it difficult to obtain secure employment, making it more difficult to escape poverty.

Additionally, the United Kingdom’s welfare system makes it difficult for those who struggle to earn a living wage. According to the Joseph Rowntree Foundation, social security is insufficient to prevent poverty for employed individuals seeking employment or dealing with health issues.

Universal credit claimants are £35 per week short of the amount required to afford essentials. 

Additionally, it can be difficult to access benefits; in some circumstances, people risk losing income if they obtain employment. It is particularly difficult for those with mental health issues such as addiction to escape poverty, and those who have been incarcerated may find it difficult to secure employment.

What effect has the cost of living crisis had on poverty?

The expense of living crisis significantly impacts poverty rates in the United Kingdom, with hundreds of thousands of people falling into poverty. 

The Office for Budget Responsibility projects a 5.7% decline in living standards during 2022/23 and 2023/24. This is the largest decline in living standards over two years since records began. During the pandemic, the £20 increase in universal credit lifted some families out of poverty; however, this assistance was eliminated in October 2021. 

Benefit claimants are 6% worse off in real terms in 2020 than in 2019

What consequences does destitution have?

Poverty affects people’s mental and physical health, placing additional strain on a National Health Service already “at breaking point.” The NHS Confederation warned last year that the cost of living crisis could have “devastating and long-lasting effects on people’s health and wellbeing.” 

There is a correlation between poverty and malnutrition, obesity, eating disorders, and melancholy. In turn, this affects the demand for NHS services to treat acute and chronic conditions caused by starvation and unhealthy diets. The NHS is projected to spend £9.7 billion annually on obesity by 2050, while malnutrition costs £19.6 billion annually.

Poverty causes chronic stress, heightens feelings of hopelessness and lowers self-esteem. 

This tension and the inability to afford nutritious food make impoverished people more susceptible to developing health problems and more difficult to treat. This is exacerbated by rising transportation costs caused by the energy crisis.

People living in poverty are also less likely to have social support networks because they must devote all their energy to survival. This increases their risk of destitution and substance abuse issues. Children living in poverty are more likely at risk of becoming victims of criminal gangs. Since 2011, life expectancy in the most impoverished areas of England has been at its lowest level. Between 2018 and 2020, women were projected to live nine months less and males four months less. 

Who is the hardest hit by poverty?

Families with children have a high poverty rate due to additional expenses and childcare responsibilities. Nearly forty per cent of children in single-parent families live in poverty. Additionally, disability substantially increases a person’s likelihood of falling into poverty. It increases living expenses, care costs, and difficulty obtaining suitable employment. The scope has determined that disabled households incur an average of £975 per month in additional expenses. 

A third of people living in a home with a disabled child lived in poverty (33%). This is the greatest level sincE 2008/09.

In the United Kingdom, ethnic minorities endure high poverty rates. In 2021/22, the highest poverty rates were found in households with a Pakistani or Bangladeshi head of household, while the lowest poverty rates were found in White households. 

Migrants are also significantly impacted by poverty. 

The government’s policy of no recourse to public funds excludes individuals from the social security system based on their immigration status. It causes high poverty rates and increases their risk of poverty. Three million women are employed in low-paying jobs, compared to only one and a half million males.