London has the third highest rate of poverty of any English region with just under a quarter of its residents living in poverty, an alarming report has found.
Data from the Joseph Rowntree Foundation suggests that 2.2 million people, or 24% of London’s population, are currently living in poverty. The only regions with higher rates are the West Midlands, at 27 per cent, and the North West, at 25 per cent.
Although the rate in London has decreased slightly over the past year, mixed tenure and the high cost of housing remain significant drivers of poverty in the capital.
Child poverty rates in London are particularly staggering, with more than one in three (34.8 per cent) meeting the criteria, according to the report.
The picture varies across the capital, but the highest rates are in Bethnal Green and Stepney, and Stratford and Bow, where around 50 per cent of children are living in poverty.
Other areas with similarly high rates are West Ham and Beckton at 49 per cent, East Ham at 48 per cent, and Poplar, Limehouse, Tottenham, Hackney South and Shoreditch at 44 per cent.
Dr Rosena Allin-Khan MP, Labour Member of Parliament for Tooting, said: "These figures are devastating but frankly not surprising. My inbox and surgeries are full of people struggling with the cost of living, unable to put enough food on their tables, and living in mould-infested, overcrowded homes.
“This is the legacy of 14 years of Conservative Government - stagnant growth, widening inequality and underinvestment in our communities have left too many people across our city unable to make ends meet.
“The new Labour Government, along with Sadiq Khan as Mayor, have embarked on ambitious programs to drive up living standards and ensure that poverty in London is confined to history."
Rachelle Earwaker, a senior economist at JRF, said: “The latest figures in our report paint a stark picture of poverty in London, with nearly one in four people living in poverty.
“This means children going to school with empty stomachs, and adults unable to keep their homes warm on a massive scale.”
Around half of Londoners live in rented accommodation, with social renters in the capital paying, on average, 50 per cent more in housing costs than the rest of the UK.
Meanwhile, private tenants face an even greater burden, paying more than 80 per cent above the national average.
London also has the highest increase in rents on average, followed by the North West and East Midlands, where the asking prices for new private rentals remains elevated.
Rachelle added: “When close to half of London residents live in rented accommodation and social and private renters pay 50% and 80% more on average respectively than those in the rest of the UK, it’s no surprise that almost half of Londoners in poverty are only in poverty after housing costs are considered.”
The report defines “relative poverty” as a household having an income that is below 60 per cent of the national median after they have paid for housing costs, adjusted for family size and composition. This is particularly relevant for London, where housing costs are high.
Data also suggests food insecurity has not improved since 2022, as the cost of living crisis continues and food prices remain high.
Food banks in The Trussell Trust network distributed 3.1 million emergency parcels across the UK in 2023 to 2024 — the highest on record, representing a 94 per cent increase since 2018 to 2019.
The increase in London was a shocking 171 per cent and research suggests the figures are directly related to inadequacies in the social security system.
“The number of emergency food parcels distributed in London in 2023/24 has also more than doubled since 2018/19, which is further evidence of a growing portion of the population being unable to afford the essentials,” Rachelle added.
“The government must intervene by introducing a minimum floor in the basic rate of Universal Credit so that nobody has to go without essentials like food and heating, as well as unfreezing Local Housing Allowance so that it is permanently tied to local rents.”
Responding to the figures, Labour MP for Bermondsey and Old Southwark, Neil Coyle said: “Poverty in London was reduced by the last Labour Government, especially for pensioners and families.
“The 14 years of Tory and LibDem Coalition Governments saw the scrapping of the target to abolish child poverty and multiple measures that have caused poverty to rocket.
“Labour will again have to reduce poverty now and established the child poverty taskforce almost immediately after the July election six months ago.
“Measures to build homes, increase income and support families again will all be crucial going forward.”
