Record High: Brits in 'Very Deep Poverty' Hits All-Time Peak Amid Cost Crisis
The number of people in Britain trapped in "very deep poverty" has soared to a record high, according to a stark new report from the Joseph Rowntree Foundation. The findings highlight a deepening crisis as poverty "hardens" across the nation, with millions struggling to afford basic necessities like food.
Poverty Deepens and Spreads
The JRF report warns that poverty has intensified, with the average person in this situation now living 29% below the poverty line, a significant increase from 23% in the mid-1990s. It reveals that 6.8 million individuals are in "very deep poverty," accounting for almost half of all those in poverty and marking the highest level ever recorded.
Child poverty has also climbed for the third consecutive year, reaching 4.5 million children. Hunger is "spreading fast," with 1.1 million more people in poverty unable to afford enough food compared to two years ago, bringing the total to 3.5 million.
Policy Impacts and Future Outlook
Labour's decision to lift the two-child benefit cap is expected to reduce child poverty by around 400,000 this April compared to the previous year. However, the JRF cautions that without further policy changes, relative poverty levels will remain stubbornly high after April. The organisation, dedicated to social change, emphasises the need for sustained action to address this escalating issue.
Energy Bills Under Pressure
In related financial news, wholesale gas prices in Europe, including the UK, have risen due to freezing weather in the United States, which has disrupted liquefied natural gas exports. This could exert upward pressure on energy bills for households, though the full impact remains uncertain. Ofgem's price cap, which limits supplier charges, is set for review in April, coinciding with a government initiative offering £150 off bills annually.
Other Economic Updates
Living Standards Disparity: A report by the Centre for Cities shows that disposable income grew by 5.2% in 11 top-performing towns and cities since 2013, compared to 2.4% nationally, with Brighton leading at an 8.1% rise.
Ground Rent Cap: Ground rents in England and Wales will be capped at £250 per year, benefiting over five million leaseholders, with rates dropping to a peppercorn after 40 years under new legislation expected in late 2028.
NS&I Rate Cuts: NS&I has announced interest rate reductions on Direct Saver and Income Bonds products, affecting around 650,000 savers, citing changes in the wider savings market.
Retail and Business News: Shop price inflation jumped to 1.5% in January, driven by business energy costs and National Insurance hikes. Meanwhile, Dr Martens shares fell after sales declined, Claire's collapsed into administration risking 1,000 jobs, and cinema chain Everyman paused new openings for 2026.
