24m people in the UK below minimum income standard

A new report shows a sharp rise in the number of people in the UK living in households with incomes below the minimum income standard (MIS). 

What is MIS?  

MIS is the income needed to afford the basics everyone needs to participate fully in society. It’s based on what society thinks is necessary for a decent life. 

Families living below MIS have been tracked and monitored every year since the research started in 2008.  

The research is funded by the Joseph Rowntree Foundation (JRF). 

Key findings of the latest MIS report: 

• 24m people – 35.9% of the UK population - lived below MIS in 2022-23, up from 30.4% the year before. That’s the biggest increase since tracking began. 

• Children and families are the hardest hit, with nearly 50% of children living in households below MIS. 

• 81.6% of kids in lone-parent families are affected, compared to 38.7% in two-parent families. 

• The number of single pensioners below MIS has more than doubled since 2008-09, rising from 16.9% to 34.5% in 2022-23. The loss of the winter fuel payment is likely to make things worse. 

• Working households aren’t unaffected. Over 5m children in working households are below MIS, compared to 1.7m in workless households. This shows that employment no longer guarantees a decent life and wages aren't keeping up with the cost of living. 

• Young adults face unique challenges, with 51.5% of 16-24-year-olds living below MIS, higher than other age groups.  

• Low wages and limited state support are leaving young people financially vulnerable. 

• Housing costs are making things worse, with 72.3% of social housing tenants and 56.9% of private renters below MIS.  

What needs to happen? 

The report calls for urgent action, including: 

• Fair pay and secure jobs: the government’s commitment to ensuring the national minimum wage reflects the cost of living is a step forward, but more needs to be done. 

• Affordable housing: address rising rents and increase housing support. 

• Cost of living relief: tackle rising energy, transport and childcare costs to ease pressure on families. 

Peter Matejic, chief analyst at Joseph Rowntree Foundation, warned how millions of people now aren't able to meet their material needs or take part in society.  

He commented: "The government's mission for growth must place people experiencing hardship on a surer footing. This starts with making sure universal credit covers the costs of essentials like food and household bills. 

“It also means giving workers more stability and security through the employment bill, as well as increasing the number of affordable homes and help with housing costs.” 

What cost-of-living help can I get right now? 

If you’re struggling with everyday expenses, you may be able to get help from your local council through the household support fund, which provides support for:  

• food  

• energy bills 

• water bills 

• other essential living costs 

You can also check if you’re entitled to any grants to help with the rising cost of living. Enter your details in the Turn2us grant checker and see if there’s any you can apply for. 

Take the time to work out and set your budget and check you’re getting all the benefits that you’re entitled to.