This briefing explains the levels and rates of poverty in the UK. It includes historical trends and forecasts for future years, as well as statistics on food poverty and poverty by employment status, housing tenure, family size, ethnic group, disability, UK region and country, and constituency.
Rent rises across the private rented sector (PRS) have meant increasingly high costs at the beginning of a tenancy, with rents increasing by around £300 on average over the past five years. Along with upfront rent and moving costs, the tenancy (or ‘security’) deposit adds considerable strain to renters’ finances when moving home.
Housing is a key building block of health, as poor housing conditions, unaffordable rents, and homelessness pose significant health risks. Rising private rent costs, coupled with the widening gap between Local Housing Allowance (LHA) and actual rents, have become major drivers of poverty and homelessness across Great Britain, exacerbating health inequalities. Yet, whilst the UK government is making progress on insecurity and quality for private renters in England, lack of action on housing unaffordability risks widening these inequalities.
Wider evidence, as well as Generation Rent’s own research, clearly demonstrates that private rental tenants continue to struggle with meeting housing costs, particularly at the beginning of a tenancy. A large part of these high upfront costs consists of the tenancy (or ‘security’) deposit, with the average deposit in England and Wales totaling £1,118.5 The deposit is set at a maximum of five weeks’ rent in England and two months’ rent in Scotland.
In the UK, good health is not shared around equally. How many years someone might expect to remain free of conditions that limit their ability to live a full and active life depends on a lot of different things. Whilst good luck and healthy habits play a role, we know that when it comes to health, money matters.
In the absence of government intervention, the number of children in poverty in the UK is expected to rise from 4.5 million to 4.8 million by the end of this parliament. Even under the most optimistic growth and employment forecasts, child poverty is projected to rise unless the government invests in the social security system. Abolishing the two-child limit is, by far, the most cost-effective way of reducing child poverty, and if done this year will transform the lives of millions of children and families by the end of this parliament.
Debt levels are rising sharply, and cases are becoming more complex and harder to resolve. The road to debt recovery is long, and impossible for many. These insights highlight the challenges facing people with debt and the need for government action.
Means-tested benefits in Britain are built on the principle that individuals with significant financial resources should use those before turning to the state for help. That’s why wealth – as well as income – is assessed when determining eligibility and entitlement levels for means-tested support. Few would argue that demonstrably rich people should receive equal support from the state than those with less resources to draw on. But although income means-testing has been widely studied and debated, capital means testing has received far less attention.
Thirteen per cent of all 16–24-year-olds in the UK are not in education, employment or training (NEET). This equates to nearly one million young people who are not currently learning or earning. The long-term scarring impact of being NEET for a sustained period of time on young people, society, and the economy, is well known. It is therefore of particular concern that 48% of young people in the UK are still not in education, employment or training a year after they first become NEET, equating to more than 360,000 young people likely to experience the long-term impacts of being out of work or education. A young person’s previous experience of employment matters; 58% of NEET young people in the UK have never had a paid job.
The devastating human rights impact of social security system failures in the UK