More than half of children in Tower Hamlets are living in poverty after housing costs, according to new council research revealing the scale of deprivation in one of London’s fastest-growing boroughs.
The findings show that 50.3% of children in the borough, equivalent to 28,234 young people, are living in poverty, while 71% live in income-deprived households.
Tower Hamlets has the highest child poverty rate in England and the fifth-highest unemployment rate, according to figures presented to senior councillors on Thursday, 12 November 2026.
Amy Jackson, the council’s director of tackling inequality, described the findings as “stark”, despite Tower Hamlets being “a borough of huge opportunity and economic growth”.
The assessment, compiled by Tower Hamlets Council to guide its approach to tackling poverty, paints a “worsening picture”, with deprivation having “increased on every measure since 2019”.
Four in ten residents living in poverty
The report reveals that 40% of Tower Hamlets residents, approximately 130,000 people, live in relative poverty after housing costs.
This compares with 26% across London and 22% nationally.
Perhaps more strikingly, 84% of households experiencing relative poverty are in work, highlighting the difficulties faced by working families struggling with London’s high living costs.
The assessment says this “reflects the extreme cost of housing and living in inner London”.
It adds: “Even those working full-time on the national living wage will in most cases fall far short of having an income sufficient to have a socially acceptable standard of living in London.”
High housing costs, low wages and rising prices for food, fuel and other essentials were identified as the three biggest drivers of poverty.
The report also highlights how disability, ethnicity, sex and wider structural inequalities can increase the risk of poverty.
Language barriers, limited internet access and difficulties navigating complex support systems can further prevent vulnerable residents from accessing help.
Ms Jackson said: “In terms of what’s driving this, it’s a combination of high housing costs, insecure employment, low pay, childcare costs, health inequalities, disability and wider structural barriers.
“It impacts residents’ opportunities, health, educational outcomes and quality of life.”
Council approves £7m support measures
Following the findings, senior councillors from the ruling Aspire Party approved measures aimed at easing financial pressures on struggling households.
The initiatives will be funded through a £7million Government crisis and resilience fund grant.
Support will include crisis payments for low-income residents facing unexpected financial difficulties, alongside assistance with rent and moving costs for people receiving certain benefits.
The council also plans to establish luncheon clubs for older residents and introduce £200 pregnancy payments for households earning less than £60,000 annually and expecting a child.
The measures are intended to provide additional financial support to residents facing rising living costs and other pressures.
Mayor says poverty figures are heartbreaking
Tower Hamlets Mayor Lutfur Rahman said the council’s priority was to strengthen support for vulnerable residents.
He said the measures would “support our families, support our communities so that safety net is strong enough, broad enough, to protect our people as far as possible”.
Highlighting the contrast between the borough’s economic growth and widespread deprivation, he added:
“We’re one of the richest boroughs in the country, yet we have one of the poorest segments of the population in the country too. It breaks my heart.”
The council hopes the assessment will help shape future efforts to tackle poverty and address inequalities across Tower Hamlets.
