Thirteen million people in the United Kingdom were living in relative poverty during the twelve months to March 2025, according to figures published by the Office for National Statistics — an increase of approximately half a million on the previous year and evidence that the cumulative burden of high inflation, elevated housing costs and constrained wages had widened inequality despite the policy interventions introduced by successive governments.
Relative poverty is defined in the UK as having a household income below 60 percent of the contemporaneous median. The measure, while not capturing absolute material deprivation, is widely used by researchers and policymakers as an indicator of households that are significantly distanced from the living standards typical of the general population.
The increase of half a million people in relative poverty over the measured year was driven by several intersecting forces. In-work poverty — the condition of being employed but still falling below the relative poverty threshold — affected a rising share of the total, reflecting the inadequacy of wages in parts of the labour market where hours are limited or where the transition from part-time to full-time work has proved difficult. Child poverty also increased within the overall figure, with families with three or more children continuing to face the particular pressures associated with the two-child benefit limit that was in effect for the reference period.
Poverty researchers noted that the March 2025 reference date meant the figures predated the Iran war oil shock, suggesting the 2025-26 data — not yet published — could show a further deterioration given the renewed inflationary pressure on household budgets driven by energy and fuel costs.
The government pointed to subsequent policy changes, including the removal of the two-child benefit limit from April 2026, as evidence of its commitment to reducing child poverty. However, independent analysts argued that the removal of the cap, while significant, would not on its own reverse the structural trends driving the figures higher.
