Absolute Poverty
“Absolute” poverty is a term used to describe a fixed standard of living. According to the latest estimates from 2023/24, just over one in five (23%) Londoners live in households with income below the 2010/11 poverty threshold (adjusted for inflation) after taking account of housing costs.
Unlike relative poverty, the absolute poverty rate in London has fallen substantially over time, from more than 40 per cent in the mid 90s to 20% in 2022/23. London’s pensioners have seen the largest fall in absolute poverty from around 50% to 15% across the same period. A similarly large decrease is observed for London’s child population, with the absolute poverty rate falling from over 60% to 27%.
Still, estimates from the previous year (2022/23) and especially the latest (2023/24) run counter to this long-term downward trend. Between 2021/22 and 2022/23 London’s absolute poverty rate remained static at 20%, while there was a 3-point increase in London’s absolute poverty rate between 2022/23 and the latest year. This appears to be a function of the cost of living crisis in 2023 e.g. high levels of inflation during this period (c.10%), and the subsequent withdrawal in 2024 of financial support programmes like the Energy Bills Support Scheme, which had protected households against the extreme inflationary pressures of the previous year.
