A new study by Loughborough University’s Centre for Research in Social Policy says London is sliding backwards, with almost 44% of people now living on an inadequate income.
The researchers found 43.9% of Londoners are below the Minimum Income Standard, up from 41.7% in 2012/13.
And it is not just families feeling the squeeze. The report says a third of pensioners were living without sufficient income in 2023/24, with campaigners warning the Freedom Pass is not a perk, it is a lifeline. They say around 380,000 pensioners do not have “all that they need to live with dignity”, and free travel helps cut costs.
But the sharpest warning is about children.
a third of pensioners were living without sufficient income in 2023/24
The study says children are the most likely group to be living below the Minimum Income Standard, with 54% in London growing up without the resources needed for a basic, socially acceptable life.
That is 1.1 million children in households below the minimum standard, up by 120,000 compared with 2012/13.
The risk is highest in lone-parent households, where 86.5% of children are below the standard, compared with 43.8% in couple-parent households.
Researchers say London makes everything harder, and more expensive. To hit the same “acceptable” standard of living, households in the capital often have to spend more than families elsewhere in the UK.
London’s hidden crisis: the study says 54% of children are below the Minimum Income Standard — 1.1 million kids, up 120,000 since 2012/13.
Childcare is a major pressure point. Parents working full-time often need nursery five days a week, and once children start school the costs do not vanish. Breakfast clubs, after-school clubs and holiday clubs quickly become part of the bill.
The figures land as Mayor Sadiq Khan has announced a £20 million boost to London buses, with groups saying public transport is one of the few ways families can keep costs down.
Housing is flagged as the big driver.
Sadiq Khan has announced a £20m boost for London buses, as groups say public transport is one of the few ways families can keep costs down.
The report says social housing tenants are at the highest risk, with four in five living below the Minimum Income Standard. It links this to the long-term squeeze on social housing supply, including the legacy of Right to Buy, leaving today’s tenants more likely to be the most vulnerable.
The share of people in private rented housing below the Minimum Income Standard is at its highest in six years, and sits six percentage points higher than renters elsewhere in the country.
Even homeowners, who fare best overall, are still seven percentage points more likely to be below the standard than homeowners in the rest of the UK.
The report also warns the rent ripple spreads further. When housing swallows wages, it squeezes everything else, from personal care to over-the-counter medicines, to basic services.
The researchers say a London-specific fix is needed.
The minimum needs might look similar across the UK, but the barriers in the capital are different, and getting worse. Interviewees said even everyday activities cost more in London, and participation in paid-for social life is getting pushed out of reach.
There is no quick fix, the report concludes. Without major funding and policy changes, the researchers warn the picture will not improve over the next decade.
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HeadlineNew report reveals almost half of London living below ‘acceptable’ standard of living
Short HeadlineNew report reveals 1.1m London kids below minimum income standard
StandfirstA new Loughborough University study says millions of Londoners are living below a basic, socially acceptable standard of living
A new study by Loughborough University’s Centre for Research in Social Policy says London is sliding backwards, with almost 44% of people now living on an inadequate income.
The researchers found 43.9% of Londoners are below the Minimum Income Standard, up from 41.7% in 2012/13.
And it is not just families feeling the squeeze. The report says a third of pensioners were living without sufficient income in 2023/24, with campaigners warning the Freedom Pass is not a perk, it is a lifeline. They say around 380,000 pensioners do not have “all that they need to live with dignity”, and free travel helps cut costs.
But the sharpest warning is about children.
a third of pensioners were living without sufficient income in 2023/24
The study says children are the most likely group to be living below the Minimum Income Standard, with 54% in London growing up without the resources needed for a basic, socially acceptable life.
That is 1.1 million children in households below the minimum standard, up by 120,000 compared with 2012/13.
The risk is highest in lone-parent households, where 86.5% of children are below the standard, compared with 43.8% in couple-parent households.
Researchers say London makes everything harder, and more expensive. To hit the same “acceptable” standard of living, households in the capital often have to spend more than families elsewhere in the UK.
London’s hidden crisis: the study says 54% of children are below the Minimum Income Standard — 1.1 million kids, up 120,000 since 2012/13.
Childcare is a major pressure point. Parents working full-time often need nursery five days a week, and once children start school the costs do not vanish. Breakfast clubs, after-school clubs and holiday clubs quickly become part of the bill.
The figures land as Mayor Sadiq Khan has announced a £20 million boost to London buses, with groups saying public transport is one of the few ways families can keep costs down.
Housing is flagged as the big driver.
Sadiq Khan has announced a £20m boost for London buses, as groups say public transport is one of the few ways families can keep costs down.
The report says social housing tenants are at the highest risk, with four in five living below the Minimum Income Standard. It links this to the long-term squeeze on social housing supply, including the legacy of Right to Buy, leaving today’s tenants more likely to be the most vulnerable.
The share of people in private rented housing below the Minimum Income Standard is at its highest in six years, and sits six percentage points higher than renters elsewhere in the country.
Even homeowners, who fare best overall, are still seven percentage points more likely to be below the standard than homeowners in the rest of the UK.
The report also warns the rent ripple spreads further. When housing swallows wages, it squeezes everything else, from personal care to over-the-counter medicines, to basic services.
The researchers say a London-specific fix is needed.
The minimum needs might look similar across the UK, but the barriers in the capital are different, and getting worse. Interviewees said even everyday activities cost more in London, and participation in paid-for social life is getting pushed out of reach.
There is no quick fix, the report concludes. Without major funding and policy changes, the researchers warn the picture will not improve over the next decade.
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