Joseph Rowntree Foundation (JRF) on poverty in the UK January 2026

27th January 2026

The latest findings from the Joseph Rowntree Foundation (JRF) on poverty in the UK ( 27 January 2026) — based on the UK Poverty 2026 report released today.

JRF's recommendations are about more than small tweaks — they emphasise a holistic and sustained strategy that combines increases in income, reductions in living costs, better labour market support, stronger social safety nets, and active roles for both government and community actors. Without such wide-ranging action, poverty — especially deep and persistent poverty — is likely to remain high.

High overall poverty levels

Around 14.2 million people in the UK — over 1 in 5 (about 21%) — were living in poverty in the 2023/24 financial year (after housing costs).

Record high "very deep poverty"

6.8 million people are now in very deep poverty, meaning incomes are less than 40% of the median household income after housing costs — the highest level in over 30 years of JRF data.

This group makes up almost half of all people in poverty, suggesting poverty is getting deeper, not just more common.

Worsening child poverty

Child poverty rose for the third year in a row, with approximately 4.5 million children now living in poverty, a rise linked to stagnant incomes and rising costs.

Unequal impact across groups

Disabled people and some ethnic minority communities — particularly Bangladeshi and Pakistani households — face disproportionately high poverty rates.

Regional differences

Poverty rates vary across the UK, with London among the highest-poverty regions (around 26%), along with parts of the Midlands and North of England.

Scotland's child poverty rate is lower than England's and Wales', likely reflecting the impact of policies like the Scottish Child Payment.

Structural concerns

While headline poverty rates have not jumped dramatically, the depth and severity of poverty has grown — meaning many households are further below the poverty line than in the past.

Even modest reductions in headline rates can mask worsening living standards, especially when average incomes shift and cost-of-living pressures persist.

What This Means

Poverty isn't just widespread — it’s deepening. More people are living with incomes far below what’s considered viable for meeting basic needs.

Children and disadvantaged groups are most affected, with significant implications for health, education, and long-term opportunity.

Despite some political changes and policy announcements (e.g., removal of the two-child benefit cap), JRF warns that broader, sustained action is needed to reduce poverty and improve living standards.

Recommendations

Make Work More Secure and Better Paid

Strengthen workplace protections and financial security for people in and out of work — e.g., better rights for paid sick leave, caring leave, and protection if someone loses a job.

Enforce minimum wage and tackle bogus self-employment to ensure people aren’t unfairly classified as contractors to avoid proper pay and protections.

2. Improve the Social Security System

Increase benefit levels so they keep up with the actual cost of essentials like food, energy and housing (rather than falling behind inflation or modest median income changes).

Reflect extra costs faced by disabled people or those with long-term health issues in benefit amounts.

Restore and improve Universal Credit work allowances (so people keep more of their earnings when moving into work).

3. Protect and Support Children & Families

Support all children regardless of birth order — i.e., remove caps such as the previous two-child limit in child-related benefits.

Increase child elements in benefits, particularly for younger children, to reduce child poverty.

4. Focus on Education & Skills

Expand access to basic skills training and adult education (e.g., digital, literacy, numeracy) so people have better opportunities for jobs that pay enough to escape poverty.

Support employment programmes tailored to people with disabilities or mental health conditions.

5. Tackle Poverty for Older People

Improve take-up of existing pensioner benefits (like Pension Credit).

Explore a ‘Universal Pension’ — a simpler, needs-based pension top-up built on the state pension.

6. Address Housing and Cost Pressures

Provide compensation (distinct from discretionary payments) for people impacted by housing benefit policies, especially where moving isn’t feasible due to disability or family circumstances.

Encourage stable tenancies across rented sectors and link rents to local earnings in social housing.

7. Strengthen Local & Community Action

Empower local authorities and regions to use economic and employment levers to reduce poverty where they have powers.

Fund and support community-led solutions (e.g., co-ordinated advice services, local job creation, community credit and savings schemes).

Involve people with lived experience of poverty in designing and evaluating policies.

8. Private Sector and Business Roles

Businesses should enforce fair wages across supply chains and make essential workplace benefits available — e.g., affordable credit options, transport help, season ticket loans.

Use corporate procurement and spending power to support disadvantaged communities and local enterprises.

9. Broader System Change

JRF argues poverty needs to be seen as a national priority, not just through isolated policy fixes — with economic policy, wages, public services, social security and community action all working together.