Approximately 14.4 million people live in relative poverty in the United Kingdom (U.K.), about 22% of the country’s total population of 66 million. Of those living in poverty, 4.3 million are children, 8.1 million are of working age and 22.1 million are of pension age. The country’s poverty rate has remained relatively unchanged since the early 2000s (about 23%). Some improvements were made in 2010 when the U.K. attempted to make an economic comeback after the financial crisis; however, this decrease has since disappeared as poverty rates are on the rise once again.

For a country that many consider one of the richest in the world, having a poverty rate of this level seems unusual. For comparison, the United States (U.S.) has an 11.5% poverty rate (2022 estimate), considerably lower than the United Kingdom’s, which begs the question: Why is there more than a 10-percentage point difference?

Causes of Poverty in the UK

According to a report released by the United Nations (U.N.) in early 2019, poverty in the U.K. is primarily due to the government’s continuous cuts to public spending and social programs that exist to benefit people experiencing poverty. Poverty in the U.K. has reached such a level that many families must decide between basic needs such as heat and sustenance since they cannot afford both. Although the government may not have deliberately or willingly chosen to worsen the situation for its impoverished population, it is the leading cause behind the rising poverty levels within the country.

Furthermore, the lack of steady income growth and the quick rise in living costs have furthered the need for the welfare benefits that the government has defunded. The government has attempted to remedy its cuts by replacing six benefits with one monthly payment, which has proven inefficient. This program, titled Universal Credit, has increased the number of people seeking out food banks, listing benefit delays or changes as a major cause.

Solutions to Poverty in the UK

Many of the government’s policies over the years, which profoundly affect the poor, often have easy solutions. For example, policies that include denying benefits to those who miss appointments or limiting the number of children a claimant can have are rules that can be eliminated almost overnight with hardly any increase in costs.

The government is also attempting to create more welfare-independent households by reducing income inequality, increasing incomes overall and providing better long-term, economically stable solutions for its citizens. According to the Joseph Rowntree Foundation, the U.K. poverty issue can be addressed by following this five-point plan:

1. Increasing incomes while reducing costs.
2. Having a better and more efficient benefits system.
3. Improving the educational system and the skills students acquire.
4. Strengthening families and communities as a whole.
5. Promoting economic growth for the long-term future that will benefit the whole population.

Positive Developments in Poverty Reduction Efforts in the UK

The Universal Credit benefit that the British government implemented in 2019 will increase work allowances. Estimates have stated that this will raise 200,000 out of poverty. Additionally, changing how one measures poverty can change one’s perspective on the matter and help improve living conditions for citizens.

The U.N. report focused on relative rather than absolute poverty. Relative poverty refers to “any family that has 55% or less of what that median family has,” whereas absolute poverty differs in that the households the report measures are compared to those of the median household in 2010/11. Although the British government has many obstacles to overcome before it can see a reduction in its poverty rates, the U.N.’s report has shed light on an important issue in the U.K. Because of this; the government can now work even harder to eradicate poverty for its citizens.

– Laura Rogers
Photo: Pexels

Updated: May 27, 2024