The Joseph Rowntree Foundation has called on the Welsh and UK Governments to act to lift hundreds of thousands of people out of deep poverty following the publication of the ‘Poverty in Wales 2025’ report in collaboration with The Bevan Foundation. The report notes that there has been little progress in reducing poverty in Wales over the past 20 years, demonstrating that poverty rates have remained around 21-22% during that period.
Among the findings of the report is that nearly half a million people in Wales were in ‘deep poverty’ between 2020 and 2023 with 310,000 living in ‘very deep poverty’. Deep poverty is defined as households living on below 50% of the median household income, whereas ‘very deep poverty’ is those living below 40%. The report states that in 2020-23, a couple with 2 primary-school-aged children living in very deep poverty would on average need an additional £13,500 a year to escape poverty.
Children were the group found to be most likely to experience persistent poverty at 18%. The report states that in three out of the last four years:
- 1 in 6 children in Wales were living in poverty (18%).
- 12% of pensioners were living in poverty.
- 11% of working age adults were living in poverty.
The overall figures show that:
- More than 1 in 5 people in Wales (22%) are living in poverty – 700,000 in total.
- Of these, 400,000 are working-age adults (21%), 200,000 are children (31%) and 100,000 are pensioners (16%).
- The highest child poverty rates by local authority are Blaenau Gwent (34%), Merthyr Tydfil, Ceredigion and Newport (32%), and the Isle of Anglesey and Pembrokeshire (31%).
Modelling conducted by the Joseph Rowntree Foundation earlier this year outlined that even if strong economic growth did materialise, if no further action is taken then child poverty in Wales would reach 34% by the year 2029-30, the highest projected rate of all UK nations.
The report also outlines the stark divisions in life expectancy between the most and least deprived areas, and the disproportionate risk of hardship that disabled people in Wales face, with 32% of disabled people living in poverty. Disabled working-age adults are almost twice as likely to live in poverty compared with those who are not disabled. Poverty rates for families with disabled children compared to those where no children have a disability are almost double also.
The report also draws attention to the particular problems associated with rural poverty. The high and increasing costs of living in rural areas is highlighted, and the report notes that this is being exacerbated by higher house prices relative to the incomes of people living in these areas. Other issues highlighted include:
- The limited access to affordable transportation in rural areas.
- The costs of off-grid gas energy which have seen bigger increases in price than gas and electricity.
- ‘Hidden poverty’ in rural Wales, which is ‘compounded by cultural stereotypes and inadequate support networks’.
- Reduced availability of rental property due to conversion of housing into holiday lets.
The report states that addressing these issues requires a comprehensive policy response including community interventions and structural changes that can support those living in poverty in rural areas effectively.
In a statement, Dr Victoria Winckler, Director at the Bevan Foundation said:
“It is shocking that there has been no progress reducing poverty in Wales in the last twenty years. Even worse, more people are in deep poverty than ever before, forced to use food banks, unable to heat their homes, watching every penny.
The report shows that the root causes are many years of cuts to social security coupled with a severe shortage of decent jobs and affordable housing. The steps taken by the Welsh Government to alleviate poverty are welcome, but there is much more to do.
As political parties gear up for the next Senedd election, we urge them to commit to practical, deliverable action to end poverty.”
Chris Birt, JRF Associate Director for Scotland, Wales and Northern Ireland said:
“Deepening poverty and a child poverty rate of almost one in three in Wales should be a stark wake up call to both the UK Government and all parties aspiring to form the next Welsh Government. The Senedd has significant powers that contribute to improving people in Wales’s standard of living. Driving down costs, better connecting communities, providing affordable housing and breaking down barriers to employment are all things they can do to reduce poverty.
But the scale of the challenge needs to be met by the scale of the response. The same is of course true of the UK Government. The threadbare social security system is their responsibility, and it drives much hardship. A good place to start reversing that would be casting the two-child limit into history as quickly as possible.
There is much work to be done by both the Welsh and UK Governments, but the prize is a Wales where people are able to explore their potential and be free from hardship – something that is miles from reality for far too many people today.”
To read the full report, follow this link to the Joseph Rowntree Foundation website.
