Tower Hamlets Faces Significant Poverty Challenge with Up to 130,000 Residents Affected
An estimated 117,000 to 130,000 residents in Tower Hamlets are living in poverty, according to a recent report discussed by the borough's Overview & Scrutiny Committee. The Anti-Poverty Rapid Needs Assessment highlights that despite Tower Hamlets' economic success, a substantial portion of its population faces financial hardship.
The assessment, which forms the foundation for the borough's new Anti-Poverty Strategy, identifies high housing costs as the single biggest driver of poverty. Child poverty, in particular, nearly doubles after housing costs are considered, rising from 26.7% to over 50%. This stark reality was a key point of discussion for councillors.
Councillor Mohammed Hasan Mahmud, Chair of the Housing and Regeneration Scrutiny Sub-Committee, questioned why housing interventions were not presented as the overriding priority, given their significant impact. Amy Jackson, Director of Tackling Inequality and Engagement, explained that while housing is critical, a multifaceted approach is necessary. The Strategic Plan 2026-2030 outlines commitments to deliver as many family-sized affordable and social homes as possible at pace, taking our total delivery between 2022-2030 to 12,000 homes.
It also aims to make better use of existing stock and take action to quickly turnaround empty homes,
oppose emergency planning measures that weaken affordable housing requirements, and champion the delivery of up to 40% affordable housing in new developments. Furthermore, the plan includes improving the quality, safety, and management of housing by upgrading all council homes to the Decent Homes Standard and working with other social landlords to do the same. Standards in all housing sectors will be raised by making private rented homes and temporary accommodation safer and better places to live. The council will also tackle overcrowding and its impacts, enhance council-owned estates and resident wellbeing, promote social and economic regeneration, and review the homelessness strategy to keep residents in-borough during their homelessness journey.
Concerns were also raised about the high rate of in-work poverty, with 84% of households in poverty being working households. Councillor Kamrul Hussain, Vice Chair of the Overview & Scrutiny Committee, questioned the council's strategy to support these residents. Ms. Jackson acknowledged this statistic as shocking
and emphasised that employment alone is not the solution, necessitating a multifaceted strategy that addresses barriers such as low pay, caring responsibilities, and employment insecurity. Sabina Khan, Project Officer, added that a key driver of poverty is the lack of claiming of benefits,
with communication, trust, and the complexity of application forms being significant barriers to uptake. The cost of essentials and the cost of living were also cited as drivers of poverty.
Discussions also touched upon the significant amount of unclaimed benefits, estimated at £187 million annually in the borough. Councillor Gulam Kibria Choudhury highlighted long waiting lists for welfare advisory services, prompting Ms. Jackson to note that the Crisis and Resilience Fund aims to boost capacity and coordination of these services. The fund seeks to ensure that various organisations and the council work in a more joined-up manner, avoiding duplication and targeting resources effectively.
Councillor Halima Islam, Chair of the Overview & Scrutiny Committee, sought clarity on measurable changes residents could expect. Ms. Jackson identified three key priorities for poverty reduction over two years: reducing child poverty, tackling in-work poverty by working with companies and focusing on the borough's economic strategy, and building financial resilience services to increase benefit uptake and reduce debt. She also highlighted that over a quarter of residents are in significant debt.
The council's economic strategy will actively support tackling in-work poverty by working with companies to get in those well-paid jobs and creating those meaningful opportunities for residents.
This will involve promoting good employment practice and supporting local SMEs through council procurement, supply chains, and regeneration initiatives. The council will also support residents into good quality jobs through better skills, training, and employment support, encouraging employers to sign up to good work charters and living wage commitments. Shaping the direction of strategic growth sectors and key clusters will build local talent pipelines and business opportunities. Working with major employers like Canary Wharf and City Fringe will help fund courses and ensure residents have access to the best jobs. The adoption of the Socioeconomic Duty will ensure the council considers the socio-economic impact of policies on residents.
The committee welcomed the draft Strategic Plan 2026-2030, recognising its ambition in tackling poverty and inequality, delivering affordable housing, improving outcomes for children and young people, strengthening community safety, and protecting the environment. However, members stressed the importance of clear delivery arrangements, measurable outcomes, and transparent monitoring of progress.
The Overview & Scrutiny Committee's work programme for 2026-27 includes further scrutiny of the Anti-Poverty Strategy, housing, and the council's continuous improvement journey, aiming to ensure tangible impact for residents. The committee's discussions are documented in the Public reports pack for the Overview & Scrutiny Committee meeting on 22nd September 2026.
