How FMCG companies can help to tackle rising poverty in the UK

Data from the Department for Work and Pensions (DWP) shows that around one in six people (17% or 11.4 million people) in the UK were in relative low income (‘relative poverty’) before housing costs in 2022/23. This rises to just over one in five people (21% or 14.3 million people) once housing costs are accounted for – including 3.2 million children (22%) before housing costs, and 4.3 million (30%) after housing costs.

Moreover, according to a recent policy paper by the UK Government, published in October 2024 , the overall number of children living in poverty increased by 700,000 between 2010/11 and 2022/23, to reach a total of 4.3 million children in poverty in 2022/23. This is three in 10 of all children in the UK. In 2022/23, 800,000 children were living in a household using a food bank within the past 12 months and 3 million children were living in material deprivation (i.e. lacking items and activities deemed necessary for an acceptable standard of living).

In London alone, based on a recent survey of 2,000 working families by charity The Felix Project, 56% of people said they had to turn to a food support service – such as a food bank or pantry – in the last year because of the rising cost of living, with 29% of them visiting once every 1 or 2 months; and 13% using a service once a week (for an estimated 169,000 working families who need food support every week). The survey also found out that 1 in 4 (25%) working families regularly struggle to afford to feed their children – and this equates to an estimated 325,000 working families across London.

How Multibank is tackling the issue

Now, a relatively new but growing initiative aims to tackle the plight of deprivation in the UK, with the support of FMCG companies that are able to donate surplus goods to the cause.

Multibank hubs, co-founded by former UK Prime Minister, Gordon Brown, together with Amazon, in response to the high levels of poverty and deprivation in the country, are recently being started all over the UK. These are community donation hubs run by a lead charity partner that distribute essential goods – including personal hygiene items, bedding and clothing – to people in need through a network of referral partners such as teachers, social workers, community groups, local charities and care professionals.

In 2022, Mr Brown and Amazon co-founded the UK’s first Multibank with local charity The Cottage Family Centre in Fife, Scotland. A second Multibank opened in Wigan, Greater Manchester in 2023, followed by a third in Swansea, South Wales in 2024. A fourth Multibank opened this July in Greenford, West London to donate more than 400,000 surplus essential goods to 40,000 families in need across London over the next 12 months.

The idea is simple: companies have surplus goods people need, while local charities and care professionals know the people who need them. The Multibank network connects the two to reduce the effects of poverty while contributing to a more circular economy. Amazon is helping to establish Multibanks in areas of deprivation across the UK and welcomes donations of surplus goods from businesses of all sizes nationwide. These include essential items, like warm clothes, bedding, hygiene products and school uniforms, as well as items like crockery and household furnishings that help make a house a home.

“The impact of austerity and the cost-of-living crisis years continues be a huge burden on too many British families. These donations mean so much to the hard-pressed families because the pennies they can save can be stretched to make their ends meet a little further towards the end of the month. For our Multibank families that means the difference between worrying and worrying themselves sick,” says Gordon Brown, former UK Prime Minister and a co-founder of the Multibank UK Network.

How Sofidel is helping in the fight against poverty

Sofidel, a leading manufacturer of tissue paper for hygienic and domestic use, operating in the UK with four production plants and particularly well-known for its Regina brand, has committed to donating much-needed essentials (toilet paper and kitchen towels) to two Multibanks, ’Cwtch Mawr‘ (‘Big Hug‘) in South Wales, run by Swansea charity Faith in Families; and ’Felix’s Multibank‘ led by The Felix Project in London.

London’s first Multibank, named ‘Felix’s Multibank’, builds on The Felix Project’s established work in rescuing high-quality surplus food that would otherwise have gone to waste and redistributing it to vulnerable Londoners. “We regularly hear from the community organisations we work with about how many people in London are struggling,” remarks Charlotte Hill OBE, CEO of The Felix Project. “Sadly, too often wages simply do cover the cost of food, clothing and all the essentials needed for themselves and their family’s wellbeing. Thousands of people are forced turn to food banks for help, and now thanks to incredible donations like this one from Sofidel, The Felix Project and Felix’s Multibank are able to provide so much more to those who are living in poverty and deprivation.”

“Our goal is to help as many families as possible by connecting surplus essentials from businesses across the UK with those who need it most,” adds John Boumphrey, UK country manager, Amazon and a co-founder of the Multibank UK Network. “We’ve already supported more than 400,000 families and we warmly welcome Sofidel to our coalition of donors who will enable us to help even more people in need.”

“At Sofidel, we are happy to join this valuable, multi-stakeholder program and are committed to supporting the communities in which we operate,” comments Francesco Pastore, chief marketing & sales officer at Sofidel. “It is a way for us to show solidarity to people affected by poverty and try to make a real difference in their daily lives.”

To learn more about the Multibank UK Network and help to grow this Coalition of Donors, visit: https://themultibank.co.uk/