Britain faces a devastating social emergency as rising expenses push millions to the brink. Official statistics demonstrate a rough milestone: 12 million people now live in absolute poverty—the highest level in three decades—while homelessness has risen to remarkable levels. With energy bills soaring to £2,700 annually and wages stagnating against inflation, families across the UK are forced to choose between food, heat, and shelter. The crisis has left 3.6 million children in poverty, schools washing uniforms for destitute pupils, and crime rates skyrocketing as hopelessness grows. This article investigates how rising expenses in Britain have initiated a catastrophic cost-of-living crisis, exposing systemic failures and leaving the nation’s social fabric at risk.
Rising absolute poverty in the UK
Absolute poverty is when a person cannot afford basic living expenses such as food, housing and essential bills. According to a report by the Department for Work and Pensions (DWP), the number of people living in absolute poverty has increased from 11.7 million in 2023 to 12 million in 2024. This figure includes 3.6 million children, an increase of 300,000 compared to last year. There are several reasons for the rise in poverty and homelessness in the UK. Rising costs in the UK and inflation are at the top of these factors. The crisis began with the COVID-19 pandemic and has profoundly impacted British households.
Rising homelessness figures following rising expenses in Britain
One of the factors contributing to the increase in poverty among British people is the decline in the value of wages. Reports show that wages have failed to grow in line with inflation. Rising expenses in Britain have caused homelessness in the UK to increase significantly in recent years. Statistics show that more than 150,000 children in England are struggling with homelessness. In London, more than 183,000 homeless people live in temporary accommodation provided by local councils. This is the highest number of homeless people recorded in the British capital. These statistics indicate a severe housing crisis and the ineffectiveness of government policies in providing shelter for vulnerable groups.
Rising inflation and rising expenses in Britain
As economic experts predicted, the inflation rate has once again risen after a decline. According to official reports, the British inflation rate has reached its highest level recently. Many British households are unable to pay their energy bills. Rising costs in the UK, particularly the rise in energy prices following the war in Ukraine and global energy supply policies, contribute to the inability to pay their bills. According to a report by Ofgem, the average price of household energy bills will reach £2,700 per year in 2024. This figure is unbearable for many families and has led to increased debt.
The social impact of poverty on British children
Rising expenses in Britain and the escalation of poverty and homelessness in Britain have not only economic consequences but also widespread social consequences. Studies have shown that children living in poverty have less access to educational facilities. The inability of parents to purchase educational materials and the reduction in school budgets have had many adverse effects. This has caused the quality of education for these children to decline sharply. According to the Food Foundation, 25% of British families cannot provide their children with enough food. This has led to an increase in malnutrition among children and has affected their physical and mental health.
Poverty among British children is out of control.
The Observer wrote in a shocking report that poverty among British children is out of control, and schools in the country have been forced to house, bathe and wash students’ uniforms. The Observer added: “School leaders said that as well as hunger, they were now trying to mitigate exhaustion, with increasing numbers of children living in homes without enough beds or unable to sleep because they were cold. They warned that desperate poverty was driving problems with behaviour, persistent absence and mental health”.
Economic crime rises as poverty in the UK worsens.
Statistics show that robberies recorded by the British police have increased by about 51% compared to 2015, reaching their highest level in the past 20 years; robberies recorded by the police and knife crime have also increased by 64% and 89%, respectively, over the same period. According to Novus Altair, London saw a significant change in the crime landscape in 2024; this increase can be attributed to several reasons, including the cost-of-living crisis and social changes after the coronavirus outbreak. While crime rates increased across the UK in 2024, the country’s capital experienced an 18% increase in crime last year.
The negative impact of rising crime on the UK economy
A report by the Policy Exchange think tank on the costs of rising crime in the country says that rising crime costs the country’s economy £250 billion a year. The report says that years of budget cuts to police, prisons and courts have contributed to a dramatic increase in crime in the UK, which is holding the economy back; the report also blames austerity for the failure of the police and criminal justice system in the UK. According to the report, the shoplifting epidemic and other crimes are hitting businesses, the public sector, and individuals, with a direct cost to the economy of around £170 billion a year, or around 6.5% of the gross domestic product (GDP).
The risk of poverty worsening due to the Starmer government’s inaction
The rise in poverty and homelessness in the UK represents a severe crisis that requires urgent government attention. Current figures show that not only is poverty increasing, but homelessness has also become a widespread crisis. Despite the measures taken so far, there is no apparent prospect of reducing rising expenses in Britain in the short term. This crisis requires structural reforms, long-term support policies and increased investment in social services. The UK is struggling with deep economic problems after leaving the EU. According to experts, there is no hope of improvement until the end of the current decade. On the other hand, the future of millions of vulnerable people in the UK will remain uncertain and challenging without these changes.
