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Restore hope to a generation today.
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Poverty in the UK

CAP client, Sharon, stood by a window, looking into the camera
Understand the drivers and effects of debt and poverty in the UK, poverty rates and key statistics. 

What is the definition of poverty?

Poverty is about having less than you need to thrive in the community and wider society you live in. An indicator of poverty can include being in a constant struggle to get access to the key things required to live like food and shelter. 

Although there isn’t one single definition or measure of poverty, the official poverty line indicates what is classed as low income. It currently sits at 60% of the UK’s median (or middle) income. If someone earns less than 60% of what the middle earners in the UK receive, then they are considered to be in poverty.

Two commonly used measures of poverty based on disposable income are:

  • Relative low income: This refers to people living in households with income below 60% of the median in that year.
  • Low income: This refers to people living in households with income below 60% of median income in a base year. This measurement is adjusted for inflation. In previous releases, the absolute poverty reference year was for 2010/11, but the Department for Work and Pensions (DWP) updated it to 2024/25 in the most recent release.

Poverty can be measured before or after housing costs are included. The number of people in poverty typically rises when housing costs are accounted for, as soaring living costs are often a main driver of poverty.

Destitute means when someone can’t meet their basic needs so that they have food, water, can stay clean and dry. Someone who is destitute may not have money, a home or possessions.

Inside our 2026 UK debt and poverty report

Many of the key statistics on this page are drawn from our latest in-depth report on UK debt and poverty. You can explore the complete findings, methodology, and regional trends in the full report below.

Read our 2026 client report, Stronger together

Find more in-depth poverty in the UK statistics 

How many people are in poverty in the UK?

10.9 million 
people (16%) were in relative poverty before housing costs 
13.4 million 
people (20%) were in relative poverty after housing costs 

Source: Poverty rates taken from the House of Comms Library: Poverty in the UK: Statistics (July 2026).

Debt and poverty in working-age adults

Today, poverty tends to touch a broader section of society than it did 30 years ago with more working people in poverty. 

Although being self employed or unemployed is a risk factor, even having stable income isn’t enough:

50% 
of adults in full-time work regularly feel anxious about their finances 
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1 in 5 
people working in food services, accommodation, admin and support services are in poverty 
1/3
of working-age disabled people are in poverty – nearly double the rate of non-disabled working-age adults 
A green icon of a wallet with a pound coin next to it.
53% 
of unemployed working age adults are in poverty. That’s nearly five times higher than for people with a job 

Child poverty statistics

Poverty has fluctuated over the last 30 years. In 1999, then-Prime Minister Tony Blair set a target to eradicate child poverty in 20 years. By the end of Labour’s time in government, an estimated 1.1 million children were out of poverty. But it was short-lived:

30% 
of UK children are still in poverty today 
24% 
of children now experience material deprivation 
1.9 million 
children were found to be in deep material poverty 

Source: CAP’s client report, ​‘Stronger together’ (2026) and Households Below Average Income: An analysis of the UK income distribution (2026).

The drivers and effects of debt and poverty

The effects of debt and poverty

Our latest client report analysed the effects of debt and poverty. Here are just some of the findings:

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Silent suffering

46% of CAP clients had considered ending their own life before coming to CAP for help

A heavy burden

51% of CAP clients felt afraid to leave their home because of debt 

Sleepless nights

86% of CAP clients lost sleep worrying about finances

A bowl of hot food

Empty plates

47% of clients said they went without food

CAP client, Simon, sat on a park bench

After Simon’s wife passed away, he was left with managing the finances on his own. When the debt started to build up and Simon lived in fear of eviction, he tried to end his life.

His landlords directed him to CAP in early 2016 and by August, he was debt free!

Watch Simon’s story here.

The drivers of debt and poverty

These drivers are the underlying factors that increase the risk of people being pulled into, and trapped in, debt and poverty. More people are coming to CAP with complex problems and multiple challenges. 

Until 2021, clients reported low income as the primary reason for their debt. Today, mental health is the main driver of debt that clients report:

Mental and physical ill-health

The higher costs associated with long-term health problems and disability can push households into poverty.

19% of UK adults experiencing mental ill-health have personal debts (excluding mortgage or student loans) they are struggling to manage. Compared to 9% of UK adults without a disability, condition, or illness.

Soaring living costs

The cost of basic essentials such as heating, lighting, food, fuel and housing are beyond reach for many low-income households.

11% of UK adults report having gone without electricity or gas at least weekly to save money over the past 12 months.

Public services at breaking point

The systems and services we all rely upon are struggling to cope with the needs of society

Limited pay and skills progression

Low income and lack of progression within careers can contribute to people being locked into debt and poverty.

Systemic inequality

Inequalities are things that are not applied fairly across society that can keep debt and poverty levels & debt high; some inequalities in our society include racism, sexism, ableism, classism — they can stop positive opportunities for all.

Financial resilience

This looks at ability, the skills & knowledge to confidently handle money matters.

14% of UK adults say they are not confident they would be able to afford an unexpected cost of £200

Relational resilience

The limited access to the right tools and confidence to go through the challenges of life with family, friends and the local community.

Deficit budgets

A deficit budget is where someone’s income simply doesn’t cover the cost of essentials.

56% of UK adults with debt they are struggling to repay report having a deficit budget

Source: CAP / Opinium polling on financial inclusion (April 2026) and the drivers of poverty (August–September 2025).

Woman stood facing the camera

Julie’s life as a single parent in Port Talbot was overwhelmed by debt – a constant burden that felt like​‘a rucksack full of bricks’ and left her terrified of every knock on the door. 

Watch Julie’s story here.

Leading research on UK debt and poverty

As an FCA-authorised debt advice charity, we combine national polling with insights from thousands of people accessing our services. We commission and produce original research to expose the realities of debt and poverty. By sharing this evidence with decision-makers, we advocate for systemic changes to address the systems and structures that are pushing people into debt and poverty and keeping them trapped there.

Explore our research here

Poverty stops with us

CAP exists to serve people for whom a face-to-face, community-based service is often the way out of debt and poverty. What sets us apart is our holistic support: working alongside local churches, we tackle both financial crisis and its wider impact through free FCA-authorised debt advice, money coaching workshops, job clubs and life skills groups.

Since CAP was founded in 1996, we estimate that…

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35,000+
people have become debt free 
100,000+
people have taken part in free, face-to-face money coaching sessions 
£500 million 
worth of debt dealt with by clients who are now debt free 
CAP client, Sharon, sat at a table holding a red mug, wearing a pink jumper and smiling at the camera

CAP doesn’t just change your debts, it changes you as a person. In the past, when I was all on my own, I thought there was never any hope. Now I’m living a brighter, bigger, more colourful life. 

Sharon, now debt free. 
CAP staff at an event, stood in front of CAP banners and green balloons, smiling

Get connected

Poverty destroys lives. It robs people of joy, hope and opportunities. But it doesn’t have to be this way. Hear about how we support people experiencing debt and poverty.
 

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Debt is robbing people’s futures. You can stop it.
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