The chancellor says growing the economy is Labour’s main priority, but the Joseph Rowntree Foundation says economic growth alone won’t pull millions out of poverty. An influential anti-poverty charity has rubbished claims by Rachel Reeves that her growth agenda will drive up living standards in the UK as it pushes the government to strengthen Universal Credit instead of chipping away at benefits.
![[Even strong growth won’t be able to alleviate rising child poverty, JRF warned]](https://static.independent.co.uk/2025/01/28/13/iStock-2169996964.jpg)
The chancellor has said growing the economy is Labour’s main priority, but a report from the Joseph Rowntree Foundation (JRF) has said economic growth “alone” won’t improve the lives of those struggling with the cost of living. It said the government must also pursue specifically targeted policies to make a meaningful change, arguing that even strong growth won’t be able to alleviate rising child poverty.
![[Prime minister Keir Starmer and chancellor Rachel Reeves are pushing to remove barriers to economic growth]](https://static.independent.co.uk/2025/01/28/09/4b8331f9a6b3cd084b3f60f473fdeecbY29udGVudHNlYXJjaGFwaSwxNzM4MTM5Mjgz-2.78820939.jpg)
Paul Kissack, chief executive of the JRF said it was “almost certain” that economic stability was necessary to sustainably reduce poverty. “However, economic growth on its own won’t reduce poverty, and it is deeply unjust to force families to wait for economic growth before they feel their situation improve, especially given the picture of deepening poverty,” he said.
“A government promising change and vowing to fix the foundations cannot walk past this grim and deteriorating picture.”. The charity’s damning report said that more than 1 in 5 people in the UK were living in poverty in 2022/23 – around 14.3 million people. Its authors point out that this is relatively stable compared to the year before, but that poverty has not fell meaningfully for 20 years. It also forecast that one in three children will be in poverty by 2029 if action is not taken.
