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

Superdry co-founder’s victim warns workplace power can silence abuse victims

A survivor's account raises questions about speaking-up cultures and accountability in organisations.

UK’s always-on work culture ‘driving employee burnout’

Nearly half of UK workers say they end most working days mentally exhausted as rising workplace pressure leaves employees and managers struggling to switch off.

Andrew Murray on why no two days look alike

A people development leader shares how travel, training and a passion for helping others shape a working day with little room for routine.

Lucy Standing: Older workers are back in the centre of the hiring debate – ready to lead the response?

For HR leaders, the argument is simple: the people being filtered out of your hiring process are not past their best.
- Advertisement -

One in 10 women quit work after pregnancy loss, report finds

Research suggests inconsistent workplace support following pregnancy loss and maternity leave is contributing to resignations and poorer mental wellbeing.

Fear of becoming obsolete grips workers as AI reshapes careers

More than two in five workers worry their skills could become outdated as AI reshapes hiring demands and increases pressure to keep learning.

Must read

Stephen Moore: Employment Appeal Tribunal upholds judgment that Uber drivers are workers

Stephen Moore, head of employment and partner at Ashfords LLP, discusses the recent Uber ruling that all drivers should be considered as workers.

Dr. Poornima Luthra: What HR leaders should, and shouldn’t, say in moments of societal crisis

Times of social tension offer an opportunity for learning and growth, for fostering truly inclusive workplaces, if approached intentionally.
- Advertisement -

You might also likeRELATED
Recommended to you