The Joseph Rowntree Foundation reports that a record number of individuals in the UK are experiencing “very deep poverty.” According to the foundation’s findings, the level of poverty has become more severe, with those affected now living 29% below the poverty threshold, an increase from 23% in the mid-1990s. The report highlights that approximately 6.8 million people are currently in “very deep poverty,” representing nearly half of all individuals living in poverty, marking the highest figure on record.
While the recent decision by the Labour party to remove the two-child benefit cap is expected to reduce child poverty by around 400,000 children this April compared to the previous year, the Joseph Rowntree Foundation cautions that without additional interventions, relative poverty rates are likely to remain elevated beyond this year. The foundation’s analysis also reveals a concerning trend of rising child poverty, with 4.5 million children now affected, marking the third consecutive year of increase.
The report also raises alarm about the rapid spread of hunger, indicating that an additional 1.1 million impoverished individuals are struggling to afford sufficient food compared to two years ago, bringing the total number of food-insecure individuals to 3.5 million.
In other news, reports suggest that the BBC may utilize streaming data from its iPlayer platform to identify individuals who have not paid for a TV licence. Currently priced at £174.50 annually, a TV licence is mandatory for watching or recording live TV broadcasts on any channel, including content on BBC iPlayer. Up to 40 million BBC iPlayer accounts could soon be linked to a database tracking TV licence ownership based on user-provided information such as email addresses, dates of birth, and postcodes.
Moreover, significant changes are expected in the self-assessment tax system, with the introduction of Making Tax Digital (MTD) aimed at enhancing tax reporting efficiency. Starting April 2026, sole traders and landlords earning over £50,000 annually will be required to adopt MTD-compatible software for tax compliance, entailing an average initial cost of £320 for software transition and subsequently £110 per year. The MTD implementation will gradually extend to lower income thresholds, reaching £30,000 in April 2027 and £20,000 in April 2028.
In the energy sector, wholesale gas prices in Europe, including the UK, have surged due to freezing weather conditions in the United States. With natural gas exports impacted, prices in Europe have soared to their highest levels since April last year. While the impact on household energy bills remains uncertain, sustained high wholesale prices are likely to exert upward pressure.
Amid these developments, the Centre for Cities has identified UK regions where disposable income has experienced notable growth, with living standards increasing by 5.2% in select cities since 2013, surpassing the national average of 2.4%. The report showcases cities like Brighton, Worthing, and London as top performers in economic growth and disposable income rise.
Furthermore, ground rent regulations are set to change in England and Wales, capping ground rents at £250 annually and transitioning to a nominal fee after 40 years, benefiting over five million leaseholders. The new legislation aims to address escalating charges that have burdened leaseholders, with additional measures allowing for the ban on new leasehold flats and the conversion to commonhold for existing leaseholders.
Lastly, NS&I has announced a reduction in the interest rates on its Direct Saver and Income Bonds products, impacting over 650,000 customers. The adjustments reflect market conditions and aim to achieve financial targets while balancing customer interests.