Scandal of 19 million Brits living below adequate standard - up four million in last six years
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Millions of families who are “just about managing” are on the tipping point of falling into poverty, a new report warns.
The Joseph Rowntree Foundation said the number of people living below an adequate standard of living had increased by four million to 19million over the past six years.
The increase has been driven by rising living costs, while incomes have stagnated, research found.
The price of a minimum “basket of goods” has jumped by up to 30% since 2008, but average earnings have only gone up by half that amount, said the report.
Record employment is not enough to help families reach a so-called minimum income standard - calculated by the Centre for Research in Social Policy on what households need to have an acceptable standard of living.
Campbell Robb, chief executive of the Joseph Rowntree Foundation, said: “These stark figures show just how precarious life can be for many families.
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“Government focus on people on modest incomes is welcome, but it cannot be at the expense of those at the poorest end of the income scale. It must remember just about managing today can become poverty tomorrow.
“This could be a very difficult time for just managing families as rising inflation begins to bite into finely balanced budgets.
“The high cost of living has already helped push four million more people below an adequate income, and if the cost of essentials such as food, energy and housing rise further, we need to take action to ease the strain.
“The Government can help in next month’s Budget by allowing families to keep more of their earnings and ensuring benefits and tax credits keep up with the rising cost of living.”
Matt Padley, of Loughborough University’s Centre for Research in Social Policy, one of the report’s authors, added: “Our report has shown a steady growth in the numbers of people with too little income.
“Unfortunately, the conditions to the end of the decade still look unfavourable for these groups.
“With forecasts of rising inflation, slowing wage growth combined with cuts to tax credits, the outlook is set to be highly challenging for families whose low incomes mean they are, at best, only just managing to make ends meet.”
(Photo: Daily Mirror)
I wonder how I'll cope with rising prices
Mum Helen Fisher is one of the millions of people who are “just about managing” – and worried that price increases could push her over the edge into financial trouble.
“I’ve got no money left to pay for anything other than the day to day essentials,” says Helen, 60, from Liverpool who lives with her 20-year-old daughter.
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“I’ve been through tough times after losing my husband and having cancer. My boiler is on the blink but there’s no way I can find £2,500 to replace it.”
Helen, who works for Liverpool Community Advice, adds: “I see people every day who are in the same boat wondering how they are going to cope with rising prices.”
Brexit vote pushes up inflation
Inflation has hit a two-and-a-half year high on the back of rising food and fuel prices.
The Consumer Price Index hit 1.8% last month – up from 1.6% in December amid the first signs of a “ Brexit squeeze” on living standards.
The Office for National Statistics said the rise was caused by sterling’s dip and rising oil prices. The leap brings inflation near the Bank of England’s 2% target and could lead to a rise in interest rates.