Soap, shampoo and toothpaste considered ‘luxury items’ amid soaring poverty in UK, Gordon Brown says
Children in the UK are suffering “the highest levels of poverty in living memory” – with basic toiletries including shampoo, soap and toothpaste now considered “luxury items”, Gordon Brown has said.
Speaking to the Politics Hub with Sophy Ridge, the former prime minister said he was “shocked and ashamed” at the current levels of poverty in Britain, which he said had not been seen for “many, many years”.
Mr Brown raised the plight of what he called “austerity’s children” – those who were born in the last 15 years “who are growing up poor, who probably have never known what it is to be anything other than poor”.
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There are currently 4.3 million children who are officially in poverty after housing costs – translating to 30% of all children in the UK, according to statistics published by the Department for Work and Pensions (DWP) in March.
The figure is an increase of 100,000 on the previous year.
Mr Brown, the most recent Labour prime minister and a former chancellor, told the Politics Hub the cost of living crisis has exacerbated the already-difficult situation for many.
Gordon Brown says people in the UK are struggling to afford basic toiletries like soap and shampoo. Pic: iStock
“We’re running a multi-bank which is a food bank, clothes bank, furnishings bank, toiletries bank, baby bank, all rolled into one,” he said.
“Last winter, people were desperate for bedding just to keep warm. They’d stop heating their homes and they were simply trying to heat themselves.
“As we move into these summer months – toiletries people cannot afford and consider soap and shampoo and toothpaste as a luxury item.
“And that is why the biggest hospital admissions for children under 10 – between five and nine – is for dental decay. And that’s three-and-a-half times higher in the poorer communities than the richer communities. So we are seeing austerity’s children.”
The former prime minister urged Chancellor Jeremy Hunt to take action in the autumn statement he is expected to deliver later in the year, while his advice for Sir Keir Starmer – who is on course to be the next Labour prime minister – was that he should “stick to his principles”.
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Sir Keir has angered some in his party by so far refusing to abolish the two child benefit cap, which the Labour leader has said he cannot commit to due to the “tough decisions” his party will face if propelled into power.
Mr Brown once again repeated his calls for a “root and branch” review of Universal Credit, which he said had “gone wrong” – including the two-child benefit cap that was introduced by the Conservative government in 2017 and prevents parents from claiming child tax credit or universal credit for more than two children.
He indicated to Ridge that he believed the Labour leader should drop the cap, saying: “I think they should do a review, a root and branch review of Universal Credit.
“And you’ve got to look at every aspect of Universal Credit which has gone wrong. And it’s not, of course, just the two child rule that is causing problems – it’s the caps that have been placed on, for example, housing benefits.”
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Appealing to Sir Keir as he prepares for the possibility of reaching Downing Street, Mr Brown said the Labour leader should “never lose sight of why you’re there in the first place”.
“If you do lose sight of that, then you will fail. If you don’t lose sight of it and commit to your principles in implementing them, then I think you’ll succeed, and I’m sure he will,” he said.
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The former chancellor also urged Mr Hunt to continue the £500m household support fund that is due to expire at the end of September, and called for a children’s fund to be created alongside foundations, charities, businesses and governments at both local and national levels.
The prime minister has acknowledged Britons’ cost-of-living struggles in his Christmas message – and vowed that helping with the issue is his “priority”.
Sir Keir Starmer also urged members of the public to “each do our bit” and “reach out” to friends, relatives and neighbours during the festive period.
His message comes at the end of a difficult year for his government, with economic growth stuttering and Chancellor Rachel Reeves facing criticism over tax rises in the budget.
In a message recorded inside 10 Downing Street, Sir Keir said: “I know many across Britain are still struggling with the cost of living. Helping with that is my priority.
“But at this time of the year, which celebrates love and abundance, loss or hardship can feel even more acute.
“So call around to a neighbour. Check in on a friend or a relative who you haven’t heard from for a while. Reach out. It can make a huge difference.
“That is what Christmas is about.”
Sir Keir Starmer delivers his Christmas message from inside Downing Street. Pic: Downing Street
The prime minister thanked NHS workers along with members of the military and the emergency services who will be on duty on Christmas Day.
“Just as so many put their feet up, some truly special people will be pulling on their uniforms and heading out to work,” he said.
“Our NHS staff emergency services and the brave men and women of our armed forces, all playing their part, doing their bit to care for the nation and to keep us safe.
“Many volunteers will be out there as well. Serving food. Reaching out to help those lonely or in need.
“So on behalf of the whole country, I want to say a big thank you.
“As a nation, we should raise a glass to you this Christmas. But more than that, we should each do our bit as well.”
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Conservative leader Kemi Badenoch used her Christmas message to talk about “Christian values” and thanked “everyone who has supported me during my first year as leader of the opposition”.
“It’s been the biggest challenge of my life,” she said. “But it’s also been a wonderful year. I can’t wait to get back to work next year to create a better United Kingdom.”
Liberal Democrat leader Sir Ed Davey spoke about the Christmas tree in London’s Trafalgar Square – an annual gift from Norway to thank the UK for its support during the Second World War – in his message.
While saying the tree may “look a little underwhelming” on first glance, the Liberal Democrat leader said it was a reminder of “friendship and loyalty”.
He added: “It makes me think about people standing together in tough times – whether against the Nazis in the 1940s, or right now in Ukraine.
“And yeah, it might not be perfect, but this tree in Trafalgar Square makes me think about families and friends looking out for one another right here at home.
“I can’t think of a better symbol of the Christmas spirit of generosity, love and hope. Of light in the darkness.”
The International Monetary Fund’s mission chief for El Salvador issued a statement confirming that government authorities were proceeding with negotiations for the sale of the country’s Chivo Bitcoin wallet.
In a Monday statement, the IMF said El Salvador’s government was continuing to discuss its Bitcoin (BTC) project with the fund’s officials, and “negotiations for the sale of the government e-wallet Chivo are well advanced.” The announcement signaled that the government may be preparing to sell some or all of its crypto holdings in the Chivo wallet.
The statement followed a May deal with El Salvador in which the IMF would pay $120 million as part of a 2024 loan agreement for $1.4 billion. As part of the deal, the government would stop acquiring Bitcoin.
It’s unclear whether El Salvador is abiding by the terms of the deal. Though the IMF reported in July that the country’s government had not purchased any BTC since December 2024, El Salvador’s Bitcoin Office continues to announce crypto buys, including 1,090 Bitcoin worth about $100 million in November.
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According to the terms of the IMF-El Salvador deal made public, the government would make public sector engagement of BTC-related economic activity “confined,” the private sector’s acceptance of Bitcoin would be voluntary, and it would wind down involvement in the Chivo wallet. Cointelegraph reached out to the IMF for comment but had not received a response at the time of publication.
El Salvador recognized Bitcoin as legal tender in 2021 and began acquiring the cryptocurrency as part of a strategy largely pushed by President Nayib Bukele. According to data provided by the country’s Bitcoin Office, the government held 7,509 Bitcoin as of Monday, worth about $659 million at the time of publication.
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Despite the reported deal between the IMF and El Salvador, Bukele said in March that the government would continue its Bitcoin investment strategy, purchasing at least one BTC daily. It’s unclear how the president’s statement could affect the IMF agreement.
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