Shocking new figures reveal that more than half of all children in the UK are now growing up in households without enough income to meet a minimum socially acceptable standard of living. The latest annual analysis shows that 52.6% of children are living in households with incomes below the Minimum Income Standard (MIS), a significant increase from 48.6% in the previous year.
This means that for the first time since at least 2008/09, the majority of children in the UK are now below MIS. In practical terms, this equates to 7.7 million children living with inadequate income in 2023/24 – around 700,000 more children than the previous year, and 2.5 million more than at the start of the time series.
The Growing Crisis of Child Poverty in the UK
The report, published by Loughborough University’s Centre for Research in Social Policy (CRSP), paints a stark picture of child poverty in one of the world’s wealthiest nations. Dr Elaine Robinson, lead author of the report, expressed deep concern about these findings: “It is deeply concerning that in the sixth richest country in the world, 7.7 million children are growing up in households that lack the resources they need to live with dignity.”
The impact of the cost-of-living crisis continues to disproportionately affect low-income households, where essentials such as food, energy bills, transport, and childcare make up a larger portion of their spending. Children remain the group most exposed to income inadequacy, reflecting longstanding financial pressures on families.
Stark Inequalities Between Family Types
The latest figures reveal significant disparities between different family structures. A staggering 84.2% of children in lone-parent families (2.9 million children) are growing up below MIS, compared with 42.7% of children in couple-parent households. This gap highlights how current systems of pay, benefits, and childcare continue to leave lone parents particularly vulnerable, even when they are in work.
Dr Robinson emphasized that while scrapping the two-child limit will ease pressure on larger families, it will not fix the broader problems of inadequate income on its own. “Larger families have been particularly badly hit since the introduction of the two-child limit in 2017,” she explained. “The scrapping of the two-child limit in the 2025 budget is welcome, but that alone will not solve the problem – more than four in ten children were living below MIS before this limit was introduced.”
Beyond Children: A Wider Crisis of Inadequate Income
The challenges of inadequate income extend well beyond children. The report shows that nearly half of young adults aged 16-24 remain below MIS, while almost one in three single pensioners are living on insufficient incomes. Perhaps most concerning is that work is not always protective – 68.5% of households below MIS include someone employed, and 59.5% of lone parents remain below MIS even when working full-time.
Professor Matt Padley, co-author of the report, painted a depressingly familiar picture: “Our analysis this year paints a depressingly familiar picture. And it reiterates the scale of the challenge facing the current government. We need urgent action to halt declining living standards in the UK, especially to drastically reduce the number of children growing up in households facing a daily struggle just to survive, let alone thrive.”
The Need for Bold Policy Action
The report calls for urgent and bold policy changes to address this growing crisis. Professor Padley warned of the real risk that unless concrete, rapid, and bold policy changes are implemented, the remaining years of this parliament will see a growing number of households continue to struggle to meet their basic needs. “The government needs to start delivering on its commitment to improving living standards for all, and soon,” he stated.
While improvements in workers’ rights are welcome and much-needed, these do little to ensure that employment provides all that households need to cover the essentials, let alone to feel part of the world around them. The report emphasizes that the challenge extends beyond children – more than two-thirds of the households living on inadequate incomes have at least one person in work.
Understanding the Minimum Income Standard
The Minimum Income Standard (MIS) is based on what members of the public think is a minimum socially acceptable standard of living. It covers essentials such as food, clothing, household bills, transport, and social and cultural participation. The fact that over half of UK children are now living below this threshold is a clear indication that many families are struggling to afford even the basics needed to participate fully in society.
The report, funded by the Joseph Rowntree Foundation, provides a comprehensive analysis of households living below MIS from 2008 to 2024. It highlights how the cost-of-living crisis has exacerbated existing inequalities and pushed more families into financial hardship. The findings underscore the urgent need for policy interventions that address both the immediate pressures facing low-income households and the structural issues that perpetuate poverty.
As the UK grapples with these challenges, the report serves as a wake-up call for policymakers, businesses, and society as a whole. Ensuring that all children have the opportunity to grow up with a socially acceptable standard of living is not just a moral imperative – it’s essential for the future prosperity and wellbeing of the entire nation.
