“You Knew, What Did You Do?” - Confronting Child Poverty in the UK

When the day comes, there’s a question each of us may face, one that defines our time and actions: “You knew, what did you do?” For business leaders, who shape the very communities they operate within, this question is especially relevant and urgent.

Last week, as headlines focused on the financial impacts of the latest budget, Oxfam released a report reminding us of the stark inequalities that still persist:

"Billionaires emit more carbon pollution in 90 minutes than the average person does in a lifetime."

it’s an inverse and desperately unjust relationship; those with the greatest wealth cause the most suffering to those who are most disadvantaged and can least afford to deal with the damage.

According to CNBC Inside Wealth: "Almost two-thirds (63%) of wealthy non-dom investors said they plan to leave the UK within two years or “shortly” if the Labour government moves ahead with plans to axe the colonial-era tax concession."

How can it be then that at the same time, millions of children in the UK live in poverty, suffering the effects of financial insecurity, hunger, and inadequate housing—realities that are worlds away from the privileges of the ultra-wealth?.

The data is alarming.

According to the Child Poverty Action Group (CPAG), more than 4.3 million children in the UK live in poverty. For those children, the impact is profound and often heartbreaking.

So, what does this look like in reality:

“Growing up in poverty meant constant uncertainty and anxiety, and meant watching my caregiver struggle to make ends meet, sometimes having to choose between paying bills or buying food.

It meant missing out on school trips, new clothes, and being pointed out as the free school meals kid. what I’m trying to say is that these are not just statistics; they represent real lives, real struggles, and real futures at risk.”

This quote is from the End Child Poverty Coalition; an organisation made up of over 120 organisations including child welfare groups, social justice groups, faith groups, trade unions and others.

The coalition believes that no child growing up in the UK should live in poverty.

I agree.

Children don’t CHOOSE to live in poverty.

And it is often so well hidden. Only last week did I discover the term ‘bed poverty’.

According to the charity Barnardos more than a million children in the UK either sleep on the floor or share a bed with parents or siblings because their family cannot afford the “luxury” of replacing broken frames and mouldy linen, according to the children’s charity.

Children going to school without having slept or eaten will not learn well.

Read more about that report here.

This blog aims to help us all consider what child poverty means— and what each of us, especially those in positions of influence, can do.

Understanding Child Poverty: The Causes and Consequences

Child poverty is not a result of any single cause. It is a complex and systemic issue, rooted in several areas:

1. Income Inequality
   In the UK, the gap between high and low incomes is vast and growing.. The impact of income disparity is particularly evident in low-income families, where financial strain limits access to education, healthcare, and other essential resources.

2. Cost of Living
   Rising costs for housing, utilities, and essentials compound financial pressures on families. Even basic living costs can consume a significant portion of income for low-income families, leaving little to meet children’s educational and recreational needs. Choosing between heating and eating causing serious anxiety to many families, even those with at least one working parent.

3. Climate Change
   Climate change doesn’t just threaten our future—it’s affecting us all, and particularly those who are disadvanaged right now. The consequences, from flooding to food and energy insecurity, disproportionately impact poorer communities, both in the UK and globally. As the climate crisis intensifies, so does the risk for children growing up in poverty, who are more likely to suffer from malnutrition, displacement, and other climate-related impacts.

Together, these factors contribute to a stark reality for millions of children in the UK and beyond. But knowing this compels us to ask: What can we do?

Actionable Steps for Business Leaders

For those ready to move from knowledge to action, here are tangible steps that can help make a meaningful difference:

1. Increase Incomes
   Businesses can play a crucial role by supporting parents into secure, well-paid employment and creating opportunities for progression. This can help reduce poverty and provide families with greater stability.

2. Reduce Essential Costs
   Collaborating with local organisations can help businesses understand the cost drivers for low-income families and work to lower them. Examples include offering discounts on necessities or providing assistance for childcare, meals, and transportation costs.

3. Build Financial Resilience
   Problem debt is a reality for many families, limiting their ability to save or invest in the future. Partnering with financial organisations can help families build savings and manage debt, making them more resilient to economic shocks.

4. Offer Skills Training
   Skills training can empower individuals from disadvantaged backgrounds, enabling them to access better jobs and greater opportunities. Organisations like The Money Charity offer employment and skills programs for youth and underserved communities in the UK.

5. Go Beyond Legal Minimums
   Many businesses can set new standards by addressing in-work poverty with voluntary measures. Setting benchmarks for fair pay, providing living wages, and creating pathways for career growth can help break cycles of poverty.

6. Develop an Impact Performance Indicator (IPI)
   Leaders can create an IPI focused on poverty reduction. This could track the company’s actions toward creating more equitable and supportive work environments and help communicate their commitment transparently.

7. Support Anti-Poverty Charities
   Working with charities dedicated to poverty alleviation, like The Trussell Trust, Save the Children UK, Action for Children, and Shelter, can amplify your impact. Donations, staff volunteering, and long-term partnerships with such organisations can provide direct relief and systemic support to families and children in need.

“You Knew, What Did You Do?” – The Responsibility We Share

For those of us who know, who have the data and see the reality, the question remains: What will we do?

Children do not choose to live in poverty, yet the burden often falls hardest on them.

Business leaders have both the opportunity and the responsibility to help create a more equitable future. Especially as we enter the season of goodwill, let’s remember that true generosity means more than seasonal charity—it’s about lasting, meaningful change.

You knew. What did you do?