23 January 2024 , 11:47
977
0
A new report has revealed that six million of the UK's poorest people would need to more than double their income to escape poverty, describing this as a "social failure at scale".
The Joseph Rowntree Foundation (JRF) added that there hasn't been a significant decrease in poverty for two decades. The charity also highlighted that the number of people living in very deep poverty has increased over the past 20 years. In 2021/22, six million people were living in households with less than 40% of the median income after housing costs, which is 1.5 million more than 20 years ago.
Consumer champion Martin Lewis responded to the report, urging policymakers and regulators to pay attention. He said: "I warned at the start of the energy crisis that I was out of tools to help many on the lowest incomes. Now we have hit the stark reality that 100,000s of people in the UK, even after they've had professional help from money charities, are still deficit budgeting so their income is less than their minimum necessary expenditure."
Lewis concluded by saying: "Definitions of poverty are tricky, especially when based on relative incomes, but that smells like a clear indication the problem is getting worse. And, let's be plain, once people are in the deepest mire, it's not a Money Saving Expert you need, it's policy makers and regulators to sit up, take note and address these deep rooted problems which is exactly what I hope they do with this Joseph Rowntree Foundation report highlighting the situation and calling for change."
The Joseph Rowntree Foundation (JRF) found that over one in five people in the UK were living in poverty last year. That's about 14.4 million folks, including 8.1 million adults who can work, 4.2 million kids, and 2.1 million older people, all struggling on less than 60% of the average income after paying for their homes.
Teachers, civil servants and train drivers walk out in biggest strike in decade
They said that two out of every ten grown-ups and three out of every ten children are facing tough times. And now, more working families are poor too 64% of adults without enough money have jobs. In total, six million people are really struggling, with their money being way below the poverty line, according to the JRF. They gave an example of a family with two young kids making just £21,900 after housing costs, saying they'd need £6,200 more each year just to scrape by.
A family living in deep poverty typically has an income of £14,600 after housing costs and would need an extra £12,800 to reach the poverty line, according to JRF. Paul Kissack, JRF group chief executive, said: "It has been almost twenty years and six Prime Ministers since the last prolonged period of falling poverty in the UK."
"Over the last two decades, we have seen poverty deepen, with more families falling below the poverty line," he added. "Little wonder that the visceral signs of hardship and destitution are all around us from rocketing use of foodbanks to growing numbers of homeless families. This is social failure at scale."
He also described it as both a moral and fiscal irresponsibility, causing hardship for those affected and putting pressure on public services like the NHS.
The report called for political parties to commit to an 'essentials guarantee' in Universal Credit, ensuring people can cover basic needs like food and energy. Mr Kissack urged political parties to outline their plans to tackle poverty as the country nears a general election.
He stated: "2024 will be a year of choices, and any political party wishing to form a new Government must set out a practical and ambitious plan to turn back the tide on poverty in the UK. That plan to ensure the dignity and respect of every member of our society will be essential for achieving any broader ambitions for the country".
Paul Carberry, chief executive of Action for Children, said the report showed that "millions are needlessly suffering the misery of hardship at huge financial and societal cost to us all" and called for "the ministerial will to make the right long term decisions" to help future generations escape poverty". Labour's shadow work and pensions secretary Liz Kendall said the report showed the "devastating consequence of 14 years of Tory failure", and vowed her party "has a plan to grow the economy to put money back into people's pockets, make work pay and deliver a bold, new cross-government child poverty strategy".
A Government spokesperson said: "We are continuing to support families with the cost of living backed by £104 billion and there are 1.7 million fewer people living in absolute poverty, including 400,000 children, compared to 2010. Children are five times less likely to experience poverty living in a household where all adults work, compared to those in workless households."
"That's why we are investing billions breaking down barriers to work and supporting over one million low-income earners through our In Work Progression offer all while cutting taxes and curbing inflation so hard-working people have more money in their pocket."
* An AI tool was used to add an extra layer to the editing process for this story. You can report any errors to [email protected]
Greggs, Costa & Pret coffees have 'huge differences in caffeine', says report