75% of London children in poverty from employed households, new figures show

Three quarters of children in poverty in London have at least one parent in a job, new analysis has found.

The statistics from Loughborough University shows that overall a third of London’s children are in poverty – with Tower Hamlets having the highest rate in the country at 47.5 per cent.

Four out of the 20 worst affected council areas in the country are the capital, it shows: Tower Hamlets, Newham, Hackney and Barking and Dagenham.

The End Child Poverty Coalition, which commissioned the analysis, said on Monday the figures showed that child poverty was “the ugly side of London” – and warned the problem could worsen due to persistently high inflation.

The analysis for the year to March 2022 also shows that London’s high housing cost is taking a toll on family finances.

It states that all of the 20 UK local authorities with the biggest difference between child poverty rates before and after housing costs are taken into account are in London.

However, nationally the worst affected areas for child poverty are in the North East and the West Midlands.

Campaigners called for the Government to scrap the two-child on Universal Credit payments and to extend free school meals. They estimated scrapping the two-child limit on the payments would lift 250,000 children out of poverty.

“A third of the city’s children don’t have what they need to thrive – and that number will rise if the Government continues to turn a blind eye to the fact that families don’t have enough to live on,” said Chief Executive of Child Poverty Action Group (CPAG) Alison Garnham.

“Abolishing the two-child limit and benefit cap, increasing child benefit and extending free school meals are the critical actions needed.

“Without them, more children in London will be hungry and cut off from the joys of childhood. Protecting children is surely a first duty of Government – ministers must act.”

A Government spokesperson said: “We have helped nearly two million people, including 400,000 children, out of absolute poverty after housing costs since 2010 and have launched a £94billion cost of living support package worth around £3,300 per household.

“In 2021/22, children living in workless households were around five times more likely to be in absolute poverty after housing costs than those where all adults work.

“This is why we are boosting our childcare offer to help more parents return to work and keep more of their earnings while making an unprecedented increase to the National Living Wage.”

Council areas with highest rates of child poverty after housing costs:

Tower Hamlets - 47.5%

Birmingham - 46.4%

Manchester - 44.7%

Sandwell - 44.6%

Newham - 43.7%

Oldham - 43.6%

Stoke-on-Trent - 43.5%

Hackney - 43.4%

Walsall - 43.3%

Wolverhampton - 43.3%

Pendle - 42.5%

Blackburn with Darwen - 42.2%

Barking and Dagenham - 42.1%

Bolton - 41.6%

Hyndburn - 41.6%

Nottingham - 41.0%

Burnley - 40.7%

Leicester - 40.6%

Middlesbrough - 40.6%

Rochdale - 40.5%