Low-to-middle-income families face more health challenges than before

More people on a low-to-middle income suffer from poor health than 30 years ago, new research shows.

Figures by the Resolution Foundation reveal those in this group are older and face more health challenges. Yet, they’re also more likely to be in work.

Shifting demographics

Today, around 13 million families in Britain fit the low-to-middle income bracket. Many of these families are older than their counterparts from the mid-1990s. In fact, almost as many are in their 50s as are in their 20s. The research found:

• 20% of low-to-middle income families are in their 20s
• 21% are in their 50s
• 30% of working-age adults in this group have a disability

More families in work, but at what cost?

The number of households out of work in this income group has halved since the 1990s. That’s partly thanks to increased employment, especially with more mothers at work.

• Employment rates for mothers in low-to-middle income families rose from 46% to 58% between 1996 and 2023
• Only 13% of these families are now jobless, compared to 24% in 1996-97

While these figures sound encouraging, rising costs mean families are often left struggling with their finances, even when they are employed.

The cost-of-living crisis

Low-to-middle-income families are feeling the pinch of steeper prices. Fewer own their own home – 30%, up from 40% in 2001. This has pushed many into the high-cost private-rented sector.

On top of this, households still don’t have much spare cash at the end of the month, with only a 10% increase over the last two decades.

Health and caring responsibilities

As families grow older, many are forced to take on more responsibilities. More low-to-middle income families are caring for ill, disabled, or elderly family members. Overall, 12% of those in low-to-middle income families have adult caring responsibilities.

Being an unpaid carer can limit work opportunities and put more financial strain on households.

Call for policy changes

Mike Brewer, interim chief executive of the Resolution Foundation, said:

“As low-to-middle income Britain has changed, so too have the policy challenges they face.

“We should learn the lessons of how a new policy settlement has boosted parental employment over time, as we look to new challenges like ill-health and disability.

“Lower-income families got 50 per cent richer over the decade that straddled the millennium. But their incomes have grown by just 10 per cent in the two decades since the mid-2000s.

“This highlights the scale of the challenges confronting the new Government as it seeks to deliver broad-based improvements to families’ living standards.”

What help can I get as a carer?

Depending on your situation, if you’re spending a lot of time looking after someone, you might be able to get a range of benefits, including:

• carer’s allowance
• carer’s credit
• carer premium
• universal credit
• pension credit
• disability living allowance for children

Find out more about what financial help you might be eligible for in our guide on benefits for carers.

Struggling to make ends meet?

If you’re out of pocket, we might be able to help.

You can access our help online or over the phone. We offer free and impartial advice and can help with:

• making sure you’re getting all the benefits you’re entitled to
• seeing if you’re eligible for any grants
• creating a realistic budget you can stick to
• advising you on debt solutions, which could reduce your monthly payments and even write off some of what you owe

Some debt solutions are also free. For others, there’s a fee.