The latest figures, from Loughborough’s Centre for Research in Social Policy (CRSP), show that in 2022-23, 35.9% of all individuals – equating to 24 million people – were below MIS, up from 30.4% in 2021-22.

This represents the largest single-year increase in the number of people falling below this threshold since this research began.

MIS sets out the income needed to afford the goods and services the public agrees are necessary to meet material needs and participate in society. The MIS research, funded by the Joseph Rowntree Foundation (JRF), began in 2008 and is updated annually

This latest analysis points to the scale of the challenge facing the Government, with rising living costs and stagnating incomes leaving millions struggling to maintain or even reach an acceptable standard of living.

Lead researcher Dr Elaine Robinson said: “The sharp rise in the number of people struggling to maintain a decent standard of living in 2022-23 is a real cause for concern and poses a substantial policy challenge.

“Increasingly stretched incomes are simply not meeting the high cost of essentials, and rising housing costs, especially for private renters, are exacerbating the situation.

For many people, work is no longer a clear route out of financial hardship – two out of every three working age households below the Minimum Income Standard have someone in work.

“Pensioners are also starting to feel the strain, and the loss of the Winter Fuel Payment for many low-income pensioners won’t help. Support is needed across all stages of life to make a material difference to people’s lives.

“Policy must tackle inadequate incomes and mitigate against rising costs, not just for one group but across society.”

Key Findings:

• Children and Families Most Affected: 48.6% of children in the UK were living below MIS in 2022-23. Those in lone-parent families were disproportionately affected, with 81.6% growing up in households with inadequate incomes compared to 38.7% in couple-parent families.
• Working Households Are Not Immune: More than three times as many children in working households (5.3 million) were below MIS compared to those in workless households (1.7 million), highlighting that employment alone is not a guaranteed route to financial security.
• Young Adults Facing  Hardship: Over half (51.5%) of 16–24-year-olds were below MIS, substantially more than any other working-age group. Limited state support and low earnings contribute to their financial vulnerability.
• Pensioners Increasingly at Risk: The proportion 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 worsen this situation.
• Housing Costs Exacerbate the Crisis: 72.3% of individuals in social housing and 56.9% of those in private rented accommodation were below MIS. Rising private rents, without corresponding increases in housing support, are driving more people into financial hardship.
• Employment No Longer Guarantees a Decent Standard of Living: Two-thirds (67.6%) of working-age households below MIS are in work, indicating that wages are failing to keep pace with the cost of living.

The analysis highlights that inadequate incomes are not confined to a single group but are impacting people across all life stages, housing tenures, and regions of the UK.

The report warns against simplistic solutions that focus solely on increasing wages or adjusting pension support, arguing that a comprehensive policy approach is needed.

Key areas for urgent policy action include:

• Fair Pay and Secure Employment: The Government’s commitment to ensuring the National Minimum Wage takes in account the cost of living is a step in the right direction, but more needs to be done to ensure work is secure and that people can work hours they want and need to.
• Housing Affordability: Addressing high rents and providing greater housing support are essential to boosting disposable incomes, and raising living standards.
• Cost of Living Measures: Policies tackling rising costs in energy, transport, and childcare are necessary to relieve financial pressures on households.

Professor Matt Padley, Co-Director of CRSP and one of the co-authors of the report, said: “Too many people living in the UK today don’t have what they need to live with dignity.

“And this isn’t just about meeting basic material needs, it’s about being able to take part in the world round you, feeling included and able to contribute to society.

“The decline in living standards over recent years has been stark – 7.5 million more people are living in households with inadequate incomes in 2022-23 than were in 2008-09.

“Nearly half of all children in the UK are growing up in households that don’t have what the public agree is needed as a minimum, let alone what they need to thrive.

“Commitments from the Labour Government to improve living standards for all are welcome. And there is an opportunity to take bold policy decisions to make this a reality: delivering a child poverty strategy that commits to undoing the damage caused by the two-child limit; investing in housing that is affordable, accessible and built where it is needed; making sure workers are paid a genuinely living wage, for the hours they need, in employment that is secure.  

“Words needs to be supported by actions. And action is desperately needed to ensure everyone in the UK can live with dignity”

Peter Matejic, Chief Analyst at Joseph Rowntree Foundation added: "Millions of people now aren't able to meet their material needs or take part in society. Far too many are treading water instead of swimming with the current because they can't afford a decent life.

“While overall progress has stagnated for some time, the living standards problem has grown more acute in recent years.

"For our economy to grow we need people to feel secure enough to take an active part in it. We can't expect them to wait for economic growth before their dire financial situation improves.

“Without direct policy action people are unlikely to feel they have a strong foundation on which to build their lives.

"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."

For the full report visit the JRF website.

ENDS