Relative poverty rises when benefits lag median income

Steps:

• Define relative poverty as income below 60% of median household income.
• Identify vulnerable groups: children and pensioners often rely on government welfare benefits.
• Assess changes: falling real value of benefits means they don't keep pace with median income growth.
• Conclude: this pushes more recipients below the poverty threshold, explaining the increase.

Why D is correct:

• Relative poverty measures income against the median; declining real benefits reduce disposable income for welfare-dependent groups, directly increasing poverty rates per the UK's official definition.

Why the others are wrong:

• A: Tax changes affect overall income distribution but not specifically welfare-dependent children and pensioners.
• B: Faster GDP growth raises median income, which would widen the poverty gap, not cause more to fall into it.
• C: Demographic shifts like higher death rates don't directly impact relative poverty thresholds or incomes.

Final answer: D