The Joseph Rowntree Foundation reports that a record number of individuals in the UK are experiencing “very deep poverty.” According to the foundation, the level of poverty has intensified, with those affected now living 29% below the poverty line, a significant increase from 23% in the mid-1990s. The report highlights that 6.8 million people are currently facing “very deep poverty,” representing almost half of all individuals living in poverty, marking the highest level on record.
While Labour’s decision to remove the two-child benefit cap is expected to reduce child poverty by around 400,000 children compared to the previous year, the Joseph Rowntree Foundation cautions that without additional interventions, relative poverty rates are likely to remain high post-April this year.
Furthermore, the foundation’s analysis reveals a concerning trend where child poverty has risen for the third consecutive year, affecting 4.5 million children. The report also raises alarm about the increasing prevalence of hunger, with 1.1 million more impoverished individuals struggling to afford sufficient food compared to two years ago, bringing the total to 3.5 million.
Regarding the UK’s TV licensing system, there are reports that the BBC might utilize iPlayer streaming data to identify individuals without a valid TV license. Presently, a TV license costing £174.50 annually is required to watch live TV or programs on BBC iPlayer. It is suggested that up to 40 million BBC iPlayer accounts could soon be cross-referenced with a database to verify TV license ownership based on the provided information.
In another development, changes to the self-assessment tax system are anticipated to impact thousands of workers from April this year. The implementation of Making Tax Digital (MTD) requires sole traders and landlords with an annual income exceeding £50,000 to adopt the new tax reporting system, involving initial costs of approximately £320 for MTD-compatible software and an annual fee of £110 thereafter. The gradual rollout of MTD will see lowered income thresholds in subsequent years, with the threshold expected to decrease to £30,000 from April 2027 and to £20,000 from April 2028.
Moreover, escalating wholesale gas prices in Europe, including the UK, have been attributed to severe weather conditions in the United States. The disruption in gas exports from the US to Europe, coupled with declining gas storage levels, has led to a surge in prices. While the full impact on UK energy bills remains uncertain, sustained high wholesale prices are likely to exert upward pressure. Despite most households being protected by Ofgem’s price cap, recent market dynamics may influence future adjustments.
Lastly, a recent study by the Centre for Cities has identified UK towns and cities where disposable income witnessed significant growth. The report reveals that living standards in these locations surged by 5.2% since 2013, surpassing the national average of 2.4%. Notably, Brighton, Worthing, and London emerged as top performers, contributing to an overall economic growth of 27% and a 5.2% rise in disposable income between 2013 and 2023.