Poverty in the UK and Scotland - Stagnation, Hardship, and the Urgent Need for Action

19th January 2026

Poverty remains one of the most pressing social challenges in the United Kingdom.

According to the Joseph Rowntree Foundation's (JRF) latest research, millions of people across the UK live in conditions that fall far short of a minimum acceptable standard of living.

While poverty affects all nations in the UK, Scotland presents both unique challenges and opportunities, reflecting differences in housing, social policy, and regional interventions.

The UK Picture: Persistent Poverty Despite Work

JRF's most recent UK-wide analysis highlights that around 14.3 million people — roughly one in five — were living in poverty in 2022-23, after accounting for housing costs. This includes 8.1 million working-age adults, 4.3 million children, and 1.9 million pensioners.

Notably, being in work no longer guarantees financial security: many working households remain below the poverty line due to low wages, insecure employment, and high living costs.

The report also emphasizes the concept of a Minimum Income Standard (MIS) — the income required for people to afford a socially acceptable standard of living. Millions of households, including those in full-time employment, fall short of this threshold, struggling to pay for essentials such as food, heating, childcare, and transport. For example:

A single adult needs roughly £30,500 per year, and a couple with two children needs about £74,000 per year to reach the MIS.

Children and Vulnerable Groups

Children bear a disproportionate burden of poverty. The JRF notes that about half of children in families with at least one working adult still live in poverty, highlighting the prevalence of in-work poverty. Certain groups face even higher risk: households with disabled adults, single parents, large families, and minority ethnic families. These patterns illustrate the systemic barriers that prevent millions from escaping poverty without targeted interventions.

Housing costs exacerbate poverty, particularly in high-rent areas such as London. High rents push otherwise moderately well-off households below poverty thresholds, making housing a central driver of deprivation.

Scotland's Experience: Slight Progress, but Challenges Remain

While Scotland shares many of the UK-wide poverty issues, it also displays distinctive trends. The JRF's Scotland-specific 2025 report shows that nearly 24 % of children in Scotland live in poverty, a figure slightly lower than the UK average but still deeply concerning. Around 9 % of people in Scotland are in very deep poverty, with incomes below 40 % of the national median.

Some policies, such as the Scottish Child Payment, appear to have had a modest impact, particularly in reducing child poverty in low-income families. Yet, progress is insufficient to meet Scotland's statutory child poverty targets of 18 % by 2024-25 and 10 % by 2030-31. The report emphasizes that without additional policy interventions, Scotland is at risk of missing these benchmarks.

Like the rest of the UK, in-work poverty is a major problem in Scotland, particularly for single-parent households and families with disabled members. Housing costs continue to be a significant factor, with about one in ten Scots in rented accommodation pushed into poverty because of high housing costs.

The Human Impact: What Poverty Means in Daily Life

Behind the statistics are millions of everyday people struggling to make ends meet. Families in poverty often have to choose between heating their homes or buying food. Children may go without new school supplies, social activities, or basic clothing. For working parents, the stress of managing insecure jobs, low pay, and high rents can affect mental health, family stability, and children's educational opportunities.

In Scotland, children in poverty may miss out on extracurricular activities, school trips, or even healthy meals, creating inequalities that can persist into adulthood. Single-parent households often face a double burden, combining limited income with the full responsibility of childcare, leaving little room for savings or unexpected expenses.

These realities underscore that poverty is not simply a statistic: it shapes opportunities, health, and life outcomes in ways that ripple through communities and generations.

Policy Recommendations: JRF’s Call to Action

Across both the UK and Scotland, the JRF underscores the urgent need for coordinated policy interventions. Recommendations include:

Social Security Reform: Increase benefit levels and remove caps that leave families below the poverty line.

Living Wages and Secure Employment: Ensure that work provides a reliable pathway out of poverty.

Affordable Housing: Reduce the cost of housing and increase access to social housing to protect low-income families.

Targeted Support for Vulnerable Groups: Focus on children, single parents, households with disabled adults, and minority ethnic families.

Comprehensive Poverty Reduction Strategies: Integrate income support, employment policy, housing, and services to ensure families can meet basic needs and participate fully in society.

The Joseph Rowntree Foundation’s research shows that poverty remains entrenched across the UK and in Scotland, affecting millions of families and children. While certain policies, like the Scottish Child Payment, demonstrate that change is possible, sustained investment and policy reform are critical to reducing poverty, ensuring households can meet basic needs, and breaking the cycle of deprivation.

Poverty is not just a number — it is a daily struggle for survival, opportunity, and dignity. Addressing it requires coordinated action across government, employers, and society, or else millions of lives will remain constrained by conditions that could otherwise be transformed.

Joseph Rowntree Foundation

Destitution in the UK: income thresholds for October 2025