How does poverty affect children’s mental health?

Rachael Gearon - Digital Content Officer

Monday 08 September 2025

Two children standing in front of an open refrigerator in a kitchen. One child is reaching inside the fridge, which contains a few food items including a container of milk on the door and some cartons on the shelves.

Child poverty affects around 4.5 million children in the UK. Growing up in poverty increases the risk of anxiety, low self-esteem and poor mental health. The impact on children’s wellbeing varies across families and communities.

When families struggle to afford basic essentials, this can affect a child’s physical and mental wellbeing. Financial pressure shapes daily life, from housing and food to school and friendships. Over time, this stress can affect how children feel, behave and cope.

Currently 1.6 million children (11% of all children) live in low-income households that struggle to afford essentials like warm winter coats and fresh fruit and vegetables.

4.5 million

children are living in poverty in the UK

That's 31%

of children living in poverty.

100,000

more children in poverty last year than the year before.

Read our response to the Child Poverty Strategy

The Children’s Society states that children living around debt are five times more likely to be unhappy than children who are not living around debt.

Impact on children's wellbeing

Children living in or around debt face added pressures. Research shows they are more likely to feel unhappy than children who are not affected by debt.

For children growing up in poverty, missing out on the things others take for granted can shape how they see themselves and their place in the world. Comparison can make these struggles even harder, whether comparing to wealthier peers or other young people on social media.

Young children in low-income households may not understand why their lives feel different to others.

They might not understand why they don’t get the same gifts or why they can’t go on school trips.

Over time, experiences like these can affect confidence and emotional wellbeing. Some children may struggle with anxiety or depression as a result.

Frequently asked questions about child poverty in the UK

What is the extent of poverty in the UK?

It’s easy to think that poverty happens elsewhere. But it’s affecting children in your community.

One in three children in the UK - or nine in every classroom - are now growing up in poverty. This is the highest ever number of children living in poverty in the UK.

Is the risk of poverty the same for everyone?

No,. Rates of child poverty vary by region and ethnic group. Unfortunately, those living in households where the head of the house is either Bangladeshi or Pakistani have a higher rate of poverty than those from white ethnic backgrounds (2021/ 2022).

And when we consider where child poverty is increasing the most in the UK, regional data shows that areas in the Midlands and Northern England have been the hardest hit.

We must act now

Explore the impact of child poverty in your local area

Use our tool

A child wearing a gray t-shirt hugging a light brown teddy bear. Background includes green shuttered doors on the left and wooden panelling on the right, suggesting an indoor setting.

How Action for Children supports children’s mental health

Right now, a devastating number of children are going without the safe and happy childhoods they deserve. And thousands of parents are struggling to get the support they need.

We understand the importance of good mental health. That’s why we have thousands of frontline workers supporting children and their families every day.

Whether services like the Blues Programme that reaches children and young people, or Parent Talk to help struggling parents, our support services address a range of issues. But we can only do this because of the generous support from people like you.

Last year we received 3,552 referrals for children and young people. I know that without the work we do, these young people can struggle to get the support they need... about 98% of people report successful outcomes when their interventions end.
Tina, a Service Coordinator at a children’s and young people’s service

Last year, we reached 687,755 children, young people, and their families. And with your help, we can continue reaching the people that need us.

No child should have to pay the price of poverty

Agree? Email your MP.

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