A new report reveals that 35.9% of individuals in the UK—equivalent to 24 million people—are now living in households with incomes below the Minimum Income Standard (MIS). This marks the largest single-year increase since the research began in 2008, highlighting the worsening impact of rising living costs and stagnant wages.
The latest findings from Loughborough University’s Centre for Research in Social Policy (CRSP), funded by the Joseph Rowntree Foundation (JRF), show that financial hardship is deepening across all age groups, housing tenures, and employment statuses.
Lead researcher Dr. Elaine Robinson described the surge in economic insecurity as a “real cause for concern”, emphasizing that rising housing costs and the inability of wages to keep up with inflation are pushing millions below a basic standard of living.
Working Families and Pensioners at Growing Risk
The research highlights that financial hardship is no longer confined to the unemployed. Alarmingly, two-thirds (67.6%) of working-age households below MIS have at least one person in employment, underscoring the reality that work alone is no longer a guaranteed path out of poverty.
Children are among the hardest hit, with 48.6% of children in the UK living below MIS. Lone-parent families are especially vulnerable, with a staggering 81.6% living below an adequate income level.
Pensioners are also increasingly affected, with the proportion of single pensioners below MIS doubling from 16.9% in 2008-09 to 34.5% in 2022-23. The recent loss of the Winter Fuel Payment for many low-income retirees is expected to worsen their financial struggles.
Housing Costs Driving Financial Insecurity
The report also points to soaring housing costs as a major factor in the cost-of-living crisis. 72.3% of individuals in social housing and 56.9% of private renters now fall below the MIS threshold. Without sufficient increases in housing support, more people are at risk of falling into financial distress.
Professor Matt Padley, co-director of CRSP, warned that millions are being excluded from society due to financial hardship.
“Too many people living in the UK today don’t have what they need to live with dignity,” he said. “This isn’t just about basic material needs—it’s about being able to take part in society.”
Call for Urgent Policy Action to Tackle Living Standards Crisis
The report urges policymakers to take immediate action to improve wages, housing affordability, and cost-of-living support. Recommendations include:
• Fair Pay and Secure Work: Ensuring that the National Minimum Wage reflects the true cost of living and that workers have secure, stable employment.
• Affordable Housing: Increasing housing support and addressing rising private rents to alleviate financial strain.
• Cost of Living Relief: Expanding policies to tackle high energy bills, transport costs, and childcare expenses.
Peter Matejic, Chief Analyst at JRF, stressed that economic growth alone is not enough to lift struggling families out of hardship.
“Millions of people are treading water instead of moving forward because they can’t afford a decent life,” he said. “For our economy to grow, people need financial security—not just promises of future improvements.”
The report warns that without immediate policy intervention, living standards in the UK will continue to decline, leaving millions without the means to participate fully in society.
