UK Sees Sharp Rise in People Living Below Minimum Income Standard, Warning for Policy Action

UK Sees Sharp Rise in People Living Below Minimum Income Standard, Warning for Policy Action

(IN BRIEF) A new report by Loughborough’s Centre for Research in Social Policy (CRSP) shows that 35.9% of the UK population, equating to 24 million people, now live below the Minimum Income Standard (MIS). This marks a significant rise from the previous year. Children, especially those in single-parent households, are most impacted. The report highlights the increasing financial strain due to high housing costs and stagnating wages, emphasizing that work is no longer a guaranteed route out of poverty. Policy experts call for comprehensive solutions, including increased wages, affordable housing, and direct actions to improve living standards and tackle child poverty.

(PRESS RELEASE) LOUGHBOROUGH, 19-Feb-2025 — /EuropaWire/ — A recent study conducted by Loughborough’s Centre for Research in Social Policy (CRSP) reveals a concerning rise in the number of people in the UK living below the Minimum Income Standard (MIS), highlighting significant challenges in addressing the country’s living standards. The data shows that in 2022-23, 35.9% of individuals, equivalent to 24 million people, were below MIS, up from 30.4% in the previous year. This marks the largest single-year increase since the research began.

The MIS, which sets the income threshold needed to meet essential needs and participate fully in society, underscores the growing financial strain many individuals face. As living costs increase and incomes stagnate, millions struggle to maintain a decent standard of living. The report further highlights that work is no longer a guaranteed solution to financial hardship, with two-thirds of working-age households below MIS still having someone employed.

Key findings show that children, particularly in single-parent households, are most affected, with nearly half of all children living in homes below MIS. Housing costs, especially for private renters, continue to exacerbate the financial crisis, with large proportions of people in social housing or private rentals unable to meet basic needs.

Policy experts emphasize the need for comprehensive solutions that address not only wage increases but also the affordability of housing, energy, and childcare. The report calls for a national strategy to address child poverty, housing accessibility, and a living wage for workers to ensure that everyone in the UK can live with dignity.

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Source: Loughborough University