In recent years Portugal has experienced a severe financial and economic crisis, with implications for all sectors of society, particularly education. Salary cuts, high rates of unemployment, high taxation and worsening career progression are just some ways in which the teaching profession has been affected. Recent policy changes have also impacted on initial teacher education. This paper gives a brief characterisation of the emerging picture within the context of crisis, drawing on data from continuing research on the effects of poverty on teaching and teacher education. It looks at student teachers' experiences during practicum in regard to issues of poverty at school, as well as the ways in which poverty is framed and discussed during their initial teacher preparation. Key findings point to student teachers' perceptions about poverty and its impact on children's well-being and equal opportunities; the strategies they employ to deal with poverty at school; and the complex role of the teacher in promoting equity and social justice through facilitating access to powerful knowledge for all children. Implications for teacher education are discussed, particularly the need to foster social and cultural dimensions of teacher education.