Rising UK poverty highlights the need for stronger workplace financial support

New government data shows a significant rise in the number of people living in relative poverty across the UK, highlighting the growing importance of financial wellbeing initiatives in the workplace.

According to figures released for the year up to March 2025, an additional half a million people are now living in households earning below 60% of the national median income, bringing the total to 13.4 million. This includes four million children and a rising number of pensioners*.

Although poverty as a share of the population rose only slightly from 19% to 20%, the figures highlight deeper structural challenges. Work and Pensions Minister Diana Johnson described the situation as “wholly unacceptable,” while analysts at the Joseph Rowntree Foundation noted that poverty levels remained stubbornly high despite new government measures**.

The data also reflects updates in how poverty is measured. For the first time, benefit income reported through the Family Resources Survey has been adjusted to reflect actual payments, revealing that previous estimates overstated the number of children in poverty by around 400,000. Even so, organisations warn that measurement changes do little to help families lacking basic necessities, emphasising work as the most sustainable route out of poverty.

For employers, these findings reinforce the critical role of workplace financial support. With living costs placing increasing pressure on households, accessible ways to save such as Workplace Savings schemes and financial education can offer meaningful support. As more employees face financial insecurity, Workplace Savings schemes are no longer a benefit, they’re an essential part of supporting staff wellbeing and long‑term financial resilience.

To find out more about our Workplace Savings scheme, email wpsavings@themarsden.co.uk. We can arrange a quick, 10-minute call to explain how this free-to-implement initiative might benefit your business, and if we can build something better together.

_{* Department for Work and Pensions (DWP), released 26 March 2026, GOV.UK website, statistical release, Households below average income: for financial years ending 1995 to 2025 (External).}

_{**Joseph Rowntree Foundation (2025) UK Poverty 2025}