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UK poverty hits 13.4 million as Labour scraps two-child benefit cap

A stark snapshot of Britain's cost-of-living crisis emerges as millions remain trapped below the poverty line. Can Labour's bold policy shift turn the tide for struggling families?

The image shows a graph depicting the number of poverty and poverty rates from 1959 to 2005. The...
The image shows a graph depicting the number of poverty and poverty rates from 1959 to 2005. The graph is accompanied by text that provides further information about the data.

UK poverty hits 13.4 million as Labour scraps two-child benefit cap

New poverty figures for the UK have been released, covering the years 2021/22 to 2024/25. The data shows that an estimated 13.40 million people were living in poverty during 2024/25. Among them, 4.03 million were children. The Department for Work and Pensions published the statistics on Thursday. The figures use a revised calculation method, defining poverty as households earning less than 60% of the median national income after housing costs.

In response to the findings, the Labour Government has announced the removal of the two-child benefit cap. This change will take effect next month. Experts estimate that scrapping the limit will lift around 450,000 children out of poverty by the end of 2029/30. The Child Poverty Action Group commented on the data, highlighting how poverty affects children's daily lives. They stressed the need for further action to support struggling families.

The latest figures reveal a persistent challenge, with millions still living below the poverty line. The abolition of the two-child benefit cap aims to reduce child poverty significantly over the next five years. The government's policy shift is set to begin next month.

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