A new report has revealed that nearly 24 million people in the UK are now living below the Minimum Income Standard (MIS), a shocking rise that paints a stark picture of modern-day poverty. The latest findings from Loughborough University’s Centre for Research in Social Policy (CRSP) show that 35.9% of the population fell below this threshold in 2022-23—up from 30.4% the previous year. That’s the largest single-year jump since the MIS research began.
So, what’s going on? Why are so many people—despite working, raising families, or even retiring—still falling behind? Let’s dive in.
Table of Contents
Meaning
First off, what is MIS? It’s not just about scraping by. The Minimum Income Standard defines what people need to afford essentials and take part in society—not just food and shelter, but also being able to connect with others, live in dignity, and feel included.
MIS is updated yearly and based on public consensus, so it reflects real-life expectations. Falling below it means living without enough to cover the basics and feeling left out socially and economically.
Surge
The jump from 30.4% to 35.9%—equating to 24 million people—is more than just a statistic. It signals a deepening crisis in living standards. With inflation, housing costs, and stagnating wages taking a toll, the rise is hitting people from all walks of life.
Here’s what’s even more concerning: more than two-thirds of working-age households below the MIS threshold actually have someone in work. So clearly, work alone isn’t the answer.
Groups
Let’s look at who’s being hit the hardest.
Children and Families
Nearly half—48.6%—of all children in the UK were living below MIS in 2022-23. It’s worse for lone-parent households: a staggering 81.6% of children in these homes live with inadequate income, compared to 38.7% in couple-parent families.
Working Households
Think having a job means financial security? Think again. Over 5.3 million children in working households were below MIS—more than triple the number in workless homes. Low pay and insecure work are key issues here.
Young Adults
A whopping 51.5% of people aged 16–24 fell below MIS. That’s the highest percentage of any age group. Limited support, part-time jobs, and unstable work mean many young people are stuck in a financial rut.
Pensioners
Even older adults aren’t safe. The share of single pensioners below MIS has more than doubled—from 16.9% in 2008-09 to 34.5% in 2022-23. The scrapping of Winter Fuel Payments for many hasn’t helped either.
Housing Struggles
Housing costs are draining pockets fast. In social housing, 72.3% of residents were below MIS. In the private rental sector, it’s 56.9%. Without increased housing support, this will only get worse.
Work
Employment used to be a ticket to a better life. Not anymore. About 67.6% of working-age households below MIS are employed. Wages simply aren’t keeping up with the cost of living, and insecure jobs leave people constantly on edge.
Policy
The solution? It’s not just about raising wages or tinkering with pensions. This issue demands a full-scale response.
Urgent Policy Needs:
- Fair Pay & Secure Jobs: Not just higher wages, but stable jobs and enough hours.
- Affordable Housing: More social housing, better housing support, and controls on soaring rents.
- Cost of Living Relief: Help with energy bills, childcare, transport, and essentials.
Professor Matt Padley, Co-Director at CRSP, put it plainly: people aren’t just lacking material necessities—they’re excluded from fully participating in society. This isn’t just poverty. It’s isolation.
The Joseph Rowntree Foundation echoed this, saying millions are just treading water. For many, it’s no longer about getting ahead—it’s about surviving.
For real change, policymakers must act now. That means making Universal Credit reflect actual living costs, strengthening job security through the Employment Bill, and building more affordable homes.
The numbers are clear. Without bold and immediate action, millions more will fall through the cracks.