4.2 million working households don’t earn enough for a decent life – what to do if you’re struggling

Research by the Joseph Rowntree Foundation (JRF) shows that more than 4.2 million working households in the UK are not earning enough to meet the Minimum Income Standard (MIS). This is the income level needed for a basic but acceptable standard of living.  

The latest figures suggest that around 25 million people live in households below the MIS, up from 16.5 million in 2008/09. Children living in single parent households are the worst hit. Around 84% of children of single parents were below the MIS, compared to roughly 42% of two-parent households. This means most children growing up with one parent are living without the income needed for a basic standard of living. 

Around half of households with at least one person in work or working part-time also live below the MIS benchmark, up from 40% in 2008/2009. This means many people who are in work are still struggling to cover essential bills.  

What is the Minimum Income Standard (MIS)?  

The Minimum Income Standard is a benchmark based on public research into what people across the UK need to live with dignity. It sets out the minimum income different households need to meet basic needs and take part in normal daily life. 

According to this benchmark, a single person needs an income of £30,500 per year, while a couple of 2 children needs to earn £74,000 a year between them. These figures are based on typical household costs and bills, as well as a minimal allowance for social and cultural participation (around £60 per week for a single person, to put the numbers into context).  

What to do if you’re struggling to cover your bills  

If this latest research reveals anything, it’s that struggling with bills isn’t uncommon. Millions of people are in the same boat, living life below what is considered a “basic standard of living”.  

However, there is help available if you’re struggling with your bills.  

• Check what help you’re entitled to – millions of people miss out on government support every year, use a benefits calculator to work out what you’re entitled to and apply for the support you can get.  

• Ask your energy or water supplier for support – many offer hardship grants, or temporary payment plans to help you manage your bills better.  

• Check for local support – councils can offer help through the Household Support Fund, as well as other schemes and discounts; contact your council to see if you’re eligible.  

• Get debt support – if you’re struggling with debt, you can get debt advice from organisations like MoneyWellness to help you work out your next steps.  

Here at thinkmoney, we have a comprehensive cost of living hub which signposts to support and provides lots of resources on helping you cut your everyday bills too.