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Social Justice

Child poverty in the UK: The definitions, details, causes, and consequences

Here’s what you need to know about children living below the breadline across the country

A combination of paltry wages, low benefit payments and a cost of living crisis mean the UK’s poorest families are getting poorer.

Disadvantaged kids found themselves at the heart of repeated Government scandals during the Covid-19 crisis, between poor provision of free school meals and the patchy rollout of devices for children to learn remotely in lockdown.

During the pandemic, nearly six in 10 families told the Child Poverty Action Group they struggled to cover the cost of essentials like food, fuel bills, rent, transport and childcare.

But the UK had a child poverty problem well before coronavirus reached the country, hitting a record high shortly before the first Covid-19 lockdown.

Now, a cost of living crisis is threatening to push more children into poverty. Analysis from the Resolution Foundation has projected that 500,000 children will fall into poverty from April, when stagnating wages will fail to cover tax hikes, soaring energy bills and rising inflation. 

Children’s charities and food aid organisations are working tirelessly to plug the gaps created by the welfare system. Children are perhaps the most vulnerable group in any society, and often first to feel the effects of rising poverty across society. Here are the basics on what child poverty is, what causes it and the impact it has.

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What is the definition of child poverty in the UK?

Households with an income less than 60 per cent of the UK average (£30,500 as of 2020) are in poverty, according to the government. That means families earning £18,300 or less are defined as living in relative poverty.

Absolute poverty, on the other hand, means something different depending on who you ask. The definition adopted by the UN means someone cannot afford basic essentials like food, clothing and housing. This measure makes it easier to compare conditions between countries – as the minimum income to keep up with basic living standards differs depending on where you are.

But in the UK, the Government defines absolute poverty as someone who earns less than 60 per cent of the median income in 2011 (£26,100). This means anyone receiving less than £15,660 per year is living in absolute poverty.

Poverty can present in several different ways. If parents are struggling to afford food and rely on food banks, that is an indicator of poverty. Having to go without heating and electricity, facing childcare costs higher than earnings, or living in insecure housing because families can’t keep up with the rent, are all indicators of poverty. It can affect every part of a child’s life.

Child Poverty Action Group (CPAG) said: “A child can have three meals a day, warm clothes and go to school, but still be poor because her parents don’t have enough money to ensure she can live in a warm home, have access to a computer to do her homework, or go on the same school trips as her classmates.”

How many children are living in poverty?

Around 500,000 children were pushed into poverty between 2015 and 2020, research for the End Child Poverty Coalition showed, meaning 4.3 million kids were living below the breadline before Covid-19 hit the UK, with around three quarters of those living in households with at least one working adult, demonstrating a rise in in-work poverty. When the Trussell Trust gave out 1.9 million three-day emergency food parcels in the year up to March 2020, 700,000 of those went to children. These figures increased in the pandemic. The Legatum Institute estimated that 120,000 of the 700,000 people who fell into poverty during the pandemic were children. On top of that,

more than two in five families told the Child Poverty Action Group they fell into poverty in 2020, meaning hundreds of thousands were struggling to pay bills and cover costs for their child during the pandemic.

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Where is child poverty most common in the UK?

Child poverty increased most dramatically in the North East of England between 2015 and 2020, rising by over a third from 26 per cent to 37 per cent of all children.

A third of the North East’s rise in child poverty happened between 2019 and 2020, with families pushed into hardship by low wages and frozen benefits, according to research carried out by Loughborough University.

The hardship facing working families in the region took child poverty rates from below the national average to the second highest in the UK after London, the End Child Poverty Coalition figures showed, fuelled by “stagnating” incomes. The figures don’t take into account the impacts of the pandemic which has caused thousands to lose out on income throughout the Covid-19 crisis due to cut work hours and jobs placed on furlough.

Children in Wales are most likely to be pushed into poverty, with 31 per cent of kids living below the breadline compared to 30 per cent in England and 24 per cent in Scotland and Northern Ireland respectively.

Children in major cities such as London – where high housing costs were “pushing families to the brink”, researchers said – and Birmingham faced a higher risk of poverty. Bethnal Green and Bow topped the list of most poverty-stricken constituencies at nearly 60 per cent, followed by Hackney South and Shoreditch at 56 per cent. 

Nearly 55 per cent of kids in Birmingham’s Ladywood constituency were living in poverty before the pandemic.

Child poverty increased in every Scottish council area, according to the End Child Poverty Coalition report, with nearly a third of Glasgow kids facing hardship.

Find out how many children in your area are living in poverty here.

What are the main causes of child poverty?

There are many reasons a child may be living in poverty. Soaring rent costs, insecure work and low pay plus a patchy welfare system are some of the factors that leave families without the means to get by.

The proportion of kids living in poverty whose parents or carers are in work increased sharply from 67 per cent in 2015 to 75 per cent in 2020.

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Campaigners and economic experts have repeatedly called for an overhaul of the social security safety net, particularly reforms for universal credit and an end to the two-child limit to receiving some benefits. The five-week wait for a first universal credit payment has been blamed for rising food bank use and an increase in children living in poverty. New claimants can receive an advance loan, but this must be repaid – meaning their payments for the year are spread over thirteen weeks rather than twelve, pushing families further into debt.

The work and pensions committee presented evidence to the government showing the wait had a damaging impact on both adults and children, but ministers refused to investigate the problem or reform the controversial benefit. 

The £20 cut to universal credit last September plunged families back into poverty after giving them light relief throughout the pandemic. As inflation continues to rise, hitting 6.2 per cent in February and forecast to reach 8.7 per cent by the end of 2022, the 3.1 per cent increase to universal credit payments is not enough to shield families from the rising cost of living. 

It means many of those who are unable to work – whether it be because there are fewer and fewer vacancies, because of disability or because of caring responsibilities – struggle to make ends meet even when claiming benefits. 

It’s a particular challenge for bigger families. Up to 43 per cent of those with two or more siblings were thought to be struggling for resources, according to CPAG. Single parent families will also be hit hard, with around a third of single parents admitting they’ve gone without meals in order to feed their kids, or have had to sacrifice putting the heating on. Even more single parents are worried that they’ll have to make these sacrifices when energy bills rise by 54 per cent in April. 

How does poverty affect children?

Living in poverty can have a serious impact on a child’s wellbeing. Some report feeling ashamed and unhappy and worry about their parents. Disadvantaged children are 4.5 times more likely to develop severe mental health problems by age 11 than their well-off peers, a Millennium Cohort study showed.

Kids in inadequate housing have been shown to be more at risk of respiratory illnesses and meningitis. Those in the most disadvantaged areas can expect 20 fewer years of good health in their lives than children in places with more resources.

“Material deprivation” – which refers to the inability to afford basics such as food and heating – increased between 2019 and 2020, including for another 140,000 children. This means around 1.7 million children total are forced to go without essentials.

It affects their education too. Research carried out five years ago showed that just a third of children who claimed free school meals achieved five or more good GCSE grades compared to two-thirds of children whose families are comfortable. 

School closures during the pandemic have hit the most deprived children hardest, while research by the Education Policy Institute showed the attainment gap between rich and poor classmates started widening prior to the pandemic.

Poverty even puts kids at greater risk of being groomed or exploited by criminal gangs, according to Anne Longfield, the former Children’s Commissioner for England. 

Sara Ogilvie, policy director of Child Poverty Action Group said the government’s failure to bring universal credit in line with inflation will impose a real terms cut of £633 on families on universal credit.   

She said: “Government needs to do more to show it understands the reality of life for parents and children across the UK. Anything less than urgent action on benefits and we’ll have more parents in debt, more hunger, more children without essentials. But for today, the government looks increasingly remote from real life families.”

What impact has Covid-19 and the cost of living had on child poverty?

Schools closing in lockdown during the pandemic meant families, whose children normally rely on free school meals for a nutritious lunch five days a week, had another mouth to feed.

Nearly one million kids signed up for free school meals for the first time in 2020, Councils across the UK provided supermarket vouchers and food parcels to cover the cost, but campaigners including Marcus Rashford had to fight for the government to extend free school meals over the summer holidays when thousands were struggling through the pandemic. 

Some children of immigrant families with no recourse to public funds (NRPF) who were living in poverty were locked out from free school meals before the pandemic. However, after a two-year review, the government has decided to extend the provision of free school meals to these children, a policy introduced during the pandemic. 

Families with children were also faced with soaring childcare costs in lockdown, particularly for those in low-paid jobs who were identified as key workers and had to keep going to work. Such costs have only increased in recent months, with childcare costs expected to soar from April, along with everything else. A recent TUC survey found that a third of working parents spend more than a third of their salary on childcare costs.

Following the chancellor’s 2022 Spring Budget announcement in March, the Resolution Foundation has estimated that, of the 1.3 million who will be plunged into further poverty from April, 500,000 will be children. Its analysis found that a single parent with one child who works 20 hours per week and receives universal credit will see a real terms income loss of 3 per cent, equating to £584 a month. 

With benefits not rising to meet inflation, parents will have to choose between feeding themselves or their children.

Head of information programmes Michael Clarke said: “We’re already hearing how many household budgets simply can’t stretch anymore. We must not underestimate the scale of the crisis we are facing, especially as the next 12 months will result in thousands of people facing impossib

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