You are here: Home - Household Bills - News -

Millions of ‘Just About Managing’ families at poverty tipping point

0
Written by: Paloma Kubiak
15/02/2017
Millions of low income families described as ‘Just About Managing’ could quickly tip into living in poverty as earnings have not caught up with rising prices, research reveals.

The number of people below the Minimum Income Standard (MIS), defined as £17,100 for a single person or £18,900 each for two working parents with two children, rose by four million between 2008/09 and 2014/15.

This means there are now 19 million people, or 30% of the population, living below the MIS, the research by the Joseph Rowntree Foundation (JRF) said.

The think tank warned that millions of ‘Just About Managing’ families – a phrase coined by Prime Minister Theresa May – are on the tipping point of falling into poverty as shop prices rise.

Forecasts show the cost of living could be 10% higher by 2020.

The Foundation also revealed 11 million people live far short of the MIS, with incomes below 75% of the standard.

It blamed the increased numbers on rising costs and stagnating wages. A typical basket of goods has risen between 27% and 30% since 2008 while average earnings have risen by half that amount.

While employment figures out today show record levels in work, the think tank said this on its own won’t help families reach the minimum income levels for a decent standard of living.

Campbell Robb, chief executive at JRF, said: “For a truly shared society, everyone should have the chance to live a decent and secure life. These stark figures show just how precarious life can be for many families. 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.”

Robb said that 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.

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

Are you a first-time buyer looking for a mortgage?

Look no further, get the help you need by searching for your perfect mortgage

Which ISA is right for you? A round up of the six products available in 2017

From cash to innovative finance to lifetime, here's our guide to the ISA products available to savers this yea...

Guide to buy-to-let tax changes

In late 2015, former Chancellor George Osborne announced a range of  tax measures aimed at landlords, which t...

A guide to switching energy provider

All you need to know about switching from one energy supplier to another.

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

Five fund tips for a 0.25% interest rate environment

With interest rates stuck at a record low 0.25% and expectations rates could fall to close to zero, here are ...

Protecting family wealth: 10 tips for cutting inheritance tax

Inheritance tax - sometimes known as 'death tax' - can cause even more heartache for bereaved families. But th...

Travel insurance: Five tips to ensure a successful claim

Ahead of your summer holiday, it’s important to make sure you have the right level of travel cover or you co...

Investing your money

Alliance Trust Plc gives you smart insight into how to invest your money

Money Tips of the Week

Read previous post:
2289911-coin-piggybank
BLOG: How to make the savings bug last longer than a month

Five top savings tips to help you grow your nest egg.

Close