Child poverty in Tower Hamlets nearly doubles once housing costs are factored in, according to a recent report.
The Anti-Poverty Rapid Needs Assessment, presented to the Overview & Scrutiny Committee on Tuesday, September 22, 2026, revealed that child poverty stands at 26.7% before housing costs but surges to over 50% after these expenses are considered.
This stark figure highlights housing costs as the single biggest driver of poverty in the borough. The report also noted that a significant 84% of households experiencing poverty are working households, underscoring the issue of low pay and precarious employment. Despite the borough's economic growth and many local strengths, too many residents continue to face financial hardship, limiting opportunities for individuals, families and communities. Underlying economic factors include high housing costs, low incomes, employment insecurity, and barriers to accessing support. Low pay, insecure employment, barriers to employment and an inadequate benefit system combine to keep working households in poverty. The high share of employment in hospitality, retail, and social care sectors, which typically offer low pay, and the prevalence of zero-hours and insecure contracts, limit financial planning.
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, the task force aims for a multifaceted approach.
The assessment estimates that between 117,000 and 130,000 residents in Tower Hamlets live in poverty. Councillor Abulkashem Mohammed Helal expressed concern about the high rate of child poverty, questioning why it was not the main focus. Amy Jackson responded that tackling poverty more broadly across society is essential to help children, as they are affected by issues such as parental low income and housing costs.
Residents face several barriers to accessing the support they need. Services can feel disjointed and the poverty support system is too complex and inaccessible for those who need it most. Furthermore, many individuals do not recognise their situation as poverty or feel entitled to financial assistance, highlighting a significant communication and trust issue. Some may be reluctant to disclose financial struggles, especially if they owe money to the council. The complexity of benefit application forms and the time required to complete them accurately also pose challenges. Additionally, the capacity of welfare advice services is strained, with organisations like Citizens Advice facing waiting lists of up to eight weeks. Structural barriers such as digital exclusion and language barriers further impede access to support.
This report was presented to the Overview & Scrutiny Committee, as detailed in the Agenda frontsheet and Public reports pack for the meeting.
