Millions need to double their income to escape poverty

-

A recent report by the Joseph Rowntree Foundation (JRF) has shed light on the increasing difficulty of escaping poverty in the United Kingdom over the past two decades.

According to the UK Poverty Report for 2024, the JRF reveals that 6 million of the poorest individuals, classified as living in very deep poverty, would need their incomes more than doubled on average to escape hardship.

The report’s analysis indicates that the average person in poverty had an income 29 percent below the poverty line in 2021-22, up from a 23 percent gap in the mid-1990s.

The poverty line is defined as living in a household with income below 60 percent of the median after housing costs.

HRreview Logo

Get our essential weekday HR news and updates.

This field is for validation purposes and should be left unchanged.
Keep up with the latest in HR...
This field is hidden when viewing the form
This field is hidden when viewing the form
Optin_date
This field is hidden when viewing the form

 

Numbers living deep beneath the poverty line increasing

For the poorest households in very deep poverty, the average income was 59 percent below the poverty line, with this gap increasing by approximately two-thirds over the past 25 years. Very deep poverty is defined as living in a household with income less than 40 percent of the median after housing costs.

A stark illustration in the report reveals that, for a couple with two children under 14, the poverty line is defined as £21,900, while income below £14,600 is considered very deep poverty.

The study indicates that the number of people in very deep poverty has risen from approximately 4.5 million in the mid-1990s to about 6 million in 2021-22. This increase has necessitated an additional £12,800 on average for individuals to reach the poverty line.

Regarded as one of the most authoritative studies on poverty in Britain, the report highlights that poverty has increased in the latest government data, returning close to pre-pandemic levels. The study sounds the alarm amid the ongoing cost of living crisis, revealing that more than one in five people (22%) in the UK were in poverty in 2021-22.

How has the UK got here?

Amidst the broader historical trends since the 1970s, the report indicates that poverty rates grew rapidly under Margaret Thatcher during the 1980s and remained stubbornly high since the mid-1990s. Poverty fell during the first half of Tony Blair’s Labour administration but started to rise after 2005.

The JRF emphasised that poverty has scarcely moved since the Conservatives regained power in 2010, with every year’s poverty rate since then hovering between 20 percent and 22 percent.

In response to the report, Paul Kissack, the Chief Executive of the JRF, remarked, “Over the last two decades, we have seen poverty deepen, with more and more families falling further and further below the poverty line.”

The government, however, contends that it is supporting families with the cost of living, highlighting a decline in absolute poverty since 2010. A government spokesperson stated, “Children are five times less likely to experience poverty living in a household where all adults work, compared to those in workless households.”

Despite these claims, the JRF report underscores the urgency for substantial and effective measures to address the deepening crisis of poverty in the UK.

Amelia Brand is the Editor for HRreview, and host of the HR in Review podcast series. With a Master’s degree in Legal and Political Theory, her particular interests within HR include employment law, DE&I, and wellbeing within the workplace. Prior to working with HRreview, Amelia was Sub-Editor of a magazine, and Editor of the Environmental Justice Project at University College London, writing and overseeing articles into UCL’s weekly newsletter. Her previous academic work has focused on philosophy, politics and law, with a special focus on how artificial intelligence will feature in the future.

Latest news

Personalising the Benefits Experience: Why Employees Need More Than Just Information

This article explores how organisations can move beyond passive, one-size-fits-all communication to deliver relevant, timely, and simplified benefits experiences that reflect employee needs and life stages.

Grant Wyatt: When the love dies – when staying is riskier than quitting

When people fall out of love with their employer, or feel their employer has fallen out of love with them, what follows is rarely a clean exit.

£30bn pension savings window opens for employers ahead of 2029 reforms

UK employers could unlock billions in National Insurance savings by expanding pension salary sacrifice schemes before new limits take effect in 2029.

Expat jobs ‘fail early as costs hit $79,000 per worker’

International assignments are ending early due to family strain, isolation and poor preparation, as rising costs increase pressure on employers.
- Advertisement -

The Great Employer Divide: What the evidence shows about employers that back parents and carers — and those that don’t

Understand the growing divide between organisations that effectively support working parents and carers — and those that don’t. This session shows how to turn employee experience data into a clear business case, linking care-related pressures to performance, retention and workforce stability.

Scott Mills exit puts spotlight on risk of ‘news vacuum’ in high-profile dismissals

Sudden departure of a long-serving BBC presenter raises questions about how employers manage high-profile dismissals and limit speculation.

Must read

Sundaram & Johnson-Jones: 5 ways your job adverts are turning people off

Updating your job adverts to make them more attractive and inclusive could unlock the diverse talent pool you’ve been missing out on.

Stephen Smith: Flexible working demands flexible communications

Is ‘workshifting’ just another in a long line of...
- Advertisement -

You might also likeRELATED
Recommended to you