Figures have revealed how one in eight children in Colchester were living below the breadline throughout the first full year of the coronavirus pandemic.
The statistics come after the number of impoverished children had in fact declined in the UK for the year 2020-21.
But charities are now warning that trend could be reversed due to the cost-of-living crisis.
According to data from the Department for Work and Pensions, 14.4 per cent of people under the age of 16 were living in families with low incomes in 2019-20.
This figure then fell to 12.7 per cent in 2020-21 – when 4,695 young people were living in poverty in Colchester.
But there are worries this percentage will increase in the next set of data should energy, living costs and inflation continue to rise.
A family is defined as low income if it earns less than 60 per cent of the national median household income before housing costs are considered.
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Families are included in the figures if they have claimed child benefit alongside another means of support – such as universal credit, tax credits or housing benefit – at some point in the year.
The chief executive of Child Poverty Action Group, Alison Garnham, said the £20 increase to universal credit payments had seen thousands of families lifted out of poverty.
But with the cost-of-living crisis starting to bite, Mrs Garnham added much of that progress could soon be lost.
She said: “Many of the children who were lifted out of poverty by the £20 increase to universal credit have already been forced back over the brink by the Government’s actions.
“And as millions struggle with spiralling costs, we know the picture will worsen.”
Mike Beckett, chief operating officer of Colchester Foodbank, said increasing funding to schools so they can offer breakfast clubs had been proven to help low-income families.
He said: “After-school clubs and breakfast clubs help children a lot during term time – these are things that can be done to keep people’s heads above water.
“Reducing the five-week wait for universal credit is also something we would welcome.
“We are grateful for any action the government will take to help tackle [the cost of living crisis].”
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