The number of children and pensioners in absolute poverty increased in 2017-18 as inflation and accommodation costs took a bigger chunk out of household finances, according to figures from the department for work and pensions.

Inequality also jumped in response to rising incomes among the richest workers and the second year of a benefit freeze that hit low-incomes households, the DWP said.

Anti-poverty groups called for government action to reverse the trend, which most analysts believe has worsened since last April. They expect it to worsen further under government policies, with poverty and inequality increasing until the middle of the next decade.

A household is considered to be in relative poverty if their income is below 60% of median income of £507 a week in 2017-18, while they are in absolute poverty if their income is below 60% of the 2010-11 median income, adjusted for inflation.

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