Wales' poverty crisis deepening as more than 1 in 5 living in hardship, new report reveals

ITV News

10-06-2025

Poverty in Wales is deepening, according to a new report from the Joseph Rowntree Foundation (JRF) and the Bevan Foundation.
The study also claims there has been little progress in reducing poverty in Wales over the past 20 years, with poverty rates remaining at around 21–22%.
According to the 'Poverty in Wales' report, published on Tuesday, more than 1 in 5 people in Wales (22%) – which is around 700,000 people – are living in poverty.
Of these, 400,000 are working-age adults (21%), 200,000 are children (31%) and 100,000 are pensioners (16%).
The report warns that if no action is taken, child poverty in Wales could reach 34% by 2029-30, which would make it the highest rate of all UK nations.
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%).
The Welsh Government says it is determined to do all it can to prevent people from going into poverty and to help those who need support the most.
The findings also reveal that nearly half a million people in Wales lived in deep poverty in 2020-23, with 310,000 in very deep poverty.
Households below 50% of the median household income are defined as living in deep poverty and those living below 40% are defined as being in very deep poverty.
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.'
In response to the report, the Welsh Government says it recognises that it is a "challenging time" for many children, families and communities in Wales, and is determined to do all it can to prevent people from going into poverty and help those who need support the most.
A Welsh Government spokesperson said: "Our commitment is backed by substantial investment of nearly £7bn between 2022-2026 to reduce costs and maximise incomes for Welsh families.
"Our child poverty strategy sets out how we will use the levers we have to deliver against our ambitious objectives to support families most in need.
"We will continue to call for positive changes in social security policy to tackle child poverty, particularly seeking a commitment to end the two child benefit rule."