The Joseph Rowntree Foundation reports that the number of individuals in Britain facing “very deep poverty” has surged to an all-time high. Their study reveals a concerning trend as those in severe poverty now live 29% below the poverty line, a notable increase from 23% in the mid-1990s. The foundation highlights that 6.8 million people are currently experiencing “very deep poverty,” representing nearly half of all individuals living in poverty, marking the highest level on record.
Although the decision by Labour to eliminate the two-child benefit cap is anticipated to reduce child poverty by approximately 400,000 children this April compared to the previous year, the Joseph Rowntree Foundation projects that without additional adjustments, relative poverty rates will remain elevated after this period. The analysis also indicates a concerning rise in child poverty, with figures reaching 4.5 million children, increasing for the third consecutive year.
The foundation warns of a rapid increase in hunger, with an additional 1.1 million impoverished individuals struggling to afford an adequate amount of food compared to two years ago, totaling 3.5 million affected individuals.
In other news, it has been reported that the BBC could leverage iPlayer streaming data to identify individuals who have not paid for a TV license. The current TV license fee stands at £174.50 annually, mandatory for watching or recording live TV programs on any channel and viewing content on BBC iPlayer, whether live or on catch-up. Reports suggest that up to 40 million BBC iPlayer accounts may soon be linked with a database tracking TV license ownership based on provided personal information upon iPlayer account registration.
Additionally, a significant reform of the self-assessment tax system is set to impact thousands of workers from April onwards. The implementation of Making Tax Digital (MTD) will extend to more individuals starting April 2026. Sole traders and landlords earning over £50,000 annually will be required to adopt the new tax reporting system, incurring an average cost of £320 to transition to MTD-compatible software, followed by an annual fee of £110. The gradual rollout of MTD for lower income thresholds will see the threshold decrease to £30,000 from April 2027 and to £20,000 from April 2028.
Moreover, wholesale gas prices in Europe, including the UK, have surged due to freezing weather conditions in the United States. Winter storms in the US have disrupted liquefied natural gas exports, impacting gas supply in Europe. Wholesale gas prices in Europe hit a record high on Monday, with the UK’s day-ahead price rising to 104.13p per therm. As gas storage levels decline across Europe, the long-term impact on energy bills for UK households remains uncertain, with higher wholesale prices exerting upward pressure.
Furthermore, a data analysis by the Centre for Cities reveals the UK towns and cities where disposable income has experienced the fastest growth. Living standards in 11 top-performing locations have surged by 5.2% since 2013, surpassing the national growth rate of 2.4%. Brighton leads the pack with an 8.1% rise, followed by Worthing at 7.8% and London at 5.8%.
Lastly, ground rents in England and Wales are set to be capped at £250 per year, benefiting over five million leaseholders. This move aims to alleviate financial burdens on leaseholders facing escalating charges, enabling them to switch to commonhold under the new legislation expected to come into effect in late 2028. Prime Minister Sir Keir Starmer emphasized the positive impact of this change, providing relief worth hundreds of pounds to affected individuals.