Britain’s Child Poverty Crisis: Why a Third of Children Now Live in Poverty

Thea Jaffe never imagined she would need a babybank. For years she recommended Little Village, a charity that provides essential items to new parents, to others in her London community group. When she unexpectedly became pregnant with her second child, she found she could no longer afford the basics.

“It’s so overwhelming having to accommodate a baby with no budget,” Jaffe said. Although she works full time in client solutions and earns £45,000 a year—well above the national average—she describes living month to month: after rent, childcare, food and bills she has only about £192 left for emergencies.

Rising child poverty in context

Child poverty in the United Kingdom has reached record levels as the cost of living has surged and public services have been weakened after more than a decade of spending cuts. About one-third of British children—roughly 4.5 million—now live in relative poverty, commonly defined as household income below 60% of the national median after housing costs, according to a government report published in April.

A 2023 study by the Joseph Rowntree Foundation estimates that around 1 million children are destitute, lacking the basics required to stay warm, dry, clothed and fed. Other research shows the UK’s child poverty rate has risen faster than in many comparable wealthy countries: UNICEF reported an almost 20% rise between 2012 and 2021, and the Resolution Foundation says by 2025 only Greece among EU countries has a higher rate.

Everyday realities for families

Charities describe families surviving on very limited food and living in poor-quality housing. “We came across one family that were just existing on cornflakes and rice,” said Sophie Livingstone, chief executive of Little Village. She added that many families live in single rooms, in homes with mould, or in other substandard conditions even when they have formal housing.

“People have got no resilience left. I’m actually not sure that there is much of a safety net anymore.” — Sophie Livingstone

For many working parents the struggle is ongoing. Around 70% of children living in poverty have at least one parent in work. Childcare is especially expensive in the UK—estimated to cost roughly 25% of a couple’s net household income and about 60% of a single parent’s net income—making paid work unaffordable or insecure for many families.

Who is most affected?

Poverty mirrors broader inequalities: almost half of children in Black and Asian households are growing up in poverty compared with 24% of White children, according to statistics from the Child Poverty Action Group. Children in single-parent households and in families where someone has a disability are also disproportionately affected.

Policy drivers and the role of austerity

Analysts point to a mixture of economic pressures—slow growth, rising costs for essentials and weak wage growth—and specific policy decisions. Between 2010 and 2024, successive governments implemented major public spending cuts and welfare changes. Jonathan Bradshaw, emeritus professor of social policy at the University of York, highlights three welfare changes introduced during austerity that contributed to rising child poverty: a cap on total household benefits, limits on housing support and the two‑child benefit cap, which prevents support for third or subsequent children born after 2017.

“Most of the increase in child poverty has occurred in large families,” Bradshaw said. Many charities and analysts identify the two‑child cap as a key factor driving higher child poverty rates.

Peter Matejic, chief analyst at the Joseph Rowntree Foundation, added that current benefit levels are generally below what families need to meet basic costs: when food, energy and essential outgoings are tallied, benefits often fall short.

Government response and the coming budget

The Labour government, in office since July last year, has said reducing child poverty is a priority. It has pledged investments including £500 million to expand Best Start Family Hubs, wider eligibility for free school meals, and a new £1 billion crisis support package to prevent children going hungry during school holidays.

Ministers face difficult trade-offs: they seek to rebuild public services while honoring manifesto commitments not to raise taxes on working people. The upcoming annual budget is expected to set out more detail on spending, tax plans and welfare rules; the two‑child benefit cap is widely anticipated to be a central issue of debate.

Outlook

Independent forecasts warn that without policy changes another 300,000 children could fall into poverty by 2030. Meanwhile, charities say families are running out of options and the informal safety net—local charities, food banks and community groups—is under intense strain.

“You just live in fear all the time and that’s not a fun place to be when you’ve got children relying on you,” said Lia, a single mother of seven‑year‑old twins, describing the anxiety of balancing care needs and bills after leaving work because of her daughters’ complex needs.

The numbers and personal stories underline a stark choice for policymakers: act now to strengthen incomes and services, or risk long-term consequences for a generation of children.