Nearly 1 Million UK Children at Risk of Poverty Due to Housing Costs, Report Warns

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A report from the Institute for Public Policy Research indicates that nearly one million children in the UK are at risk of poverty as housing costs continue to rise. The think tank warns that the government's failure to increase the Local Housing Allowance (LHA) could push an additional 90,000 families into financial hardship within the next year. The report estimates that by March 2026, 925,000 children will be affected by shortfalls in government housing support.

LHA rates, which have not kept pace with rising rents since being reduced in 2011, only fully cover rent for families living in the lowest-cost rental properties, according to the report. Professor Ashwin Kumar, a co-author of the study, stated that the lack of adequate housing support increases financial pressures on families, leading to potential issues such as food insecurity and health problems.

The report also highlights the growing number of children in the private rental sector, increasing from one in 12 to one in five over the last 20 years. Additionally, it points out significant disparities in LHA coverage across regions, with nearly two-thirds of families in Wales facing a shortfall.

A government spokesperson reiterated their commitment to eradicating poverty and outlined various support measures, including the extension of the household support fund.

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