Households below a minimum income standard: 2008/09 to 2010/11

The Joseph Rowntree Foundation (JRF) commissioned this paper as part of its programme on minimum income standards, which aims to define an 'adequate' income, based on what members of the public think is enough money to live on

The impact of higher wage floors on labour markets

The impact of higher wage floors on labour market

Tackling the adequacy trap: earnings, incomes and work incentives under the Universal Credit

Under existing tax and benefit rules, households on low-to-middle incomes frequently face high rates of withdrawal of state support as they increase their earnings. The introduction of the Universal Credit does not fundamentally change this situation, though there will be a complex mix of winners and losers. For households with the lowest earnings, the very highest withdrawal rates (where each additional £1 of income is reduced by 90p or more) will be abolished. However for others, withdrawal rates will get steeper (rising from 70 per cent to 76 per cent for existing tax credit recipients). Under reasonable assumptions about the structure of the future system, full-time workers on low wages will tend to be better-off under Universal Credit if they are supporting partners and children , but slightly worse-off if they are single. Lone parents working less than 16 hours a week will benefit, but those working longer than this will be worse-off. People who are not working will have increased incentives to do small amounts of work if they do not have a working partner, but in many cases less incentive if their partner does work. The precise pattern of winners and losers is highly sensitive to as yet unresolved details of the Universal Credit, such as how the childcare tax credit will be replaced. The nature and level of childcare support introduced will affect the ability of many families with children to earn a reasonable income, and determine whether work continues to pay

A minimum income standard for rural households

This study extends the MIS UK research to consider what rural households need to afford the same standard of living as their urban counterparts. It examines: what different rural households need to meet the minimum income standard in comparison with urban households; how meeting needs in key areas of expenditure, such as transport and fuel, differs significantly in different types of location; and how much income people in rural areas therefore require in order to afford a minimum socially acceptable standard of living

A minimum income standard for Britain in 2009

This report is the first annual update of the Minimum Income Standard for Britain (MIS), originally published in 2008. The standard is based on research into what members of the public, informed where relevant by expert knowledge, think should go into a budget in order to achieve a minimum socially acceptable standard of living. The report considers two aspects of uprating the standard for 2009: changes in prices that influence the cost of a minimum ‘basket’ of goods and services, and changes in living standards that may influence what items should be included in that basket

Global influences on the cost of a minimum standard of living in the UK

In recent years, relatively large increases in the price of food, domestic energy and some other essentials have caused the minimum cost of living to rise faster than the general inflation rate. This creates an important domestic issue: how to prevent a fall in living standards for disadvantaged groups whose incomes are often linked to general inflation but whose living costs are rising faster than this. But it also raises questions about the role of global influences on economic disadvantage in the United Kingdom. The global cost of commodities and of imported consumer goods today have important impacts on the price of essentials. This paper explores ways in which this might affect the future ability of households in the UK to afford a minimum acceptable standard of living. This question can be addressed through the Minimum Income Standard (MIS), a measure of how much money households in the UK need in order to reach a minimum acceptable standard of living, based on what members of the public think. An examination of the main areas of spending that comprise this standard shows which have been the main drivers in recent years of rises in essential living costs, susceptible to global influences on price. This analysis identifies three such categories in particular: food, domestic fuel and clothing. The price of these items in the UK is being influenced by a long-term rise in world demand for commodities, and by limits to global energy use related to the supply of fuels and efforts to contain their impact on the environment. These factors have driven a general increase in food and fuel prices, especially since 2007, and are likely to push these prices higher in the future. However, world commodity prices are also highly volatile, partly because of fluctuations in world demand but also because the prospect of large price hikes has attracted speculation, which can sometimes accentuate price movements. UK consumers have been protected from the extremes of commodity price movements, but nevertheless could in future face uncertainty over the price of essentials that makes it harder for those on low incomes to budget. (Continues...)

A minimum income standard for Northern Ireland

The first minimum income standard for Great Britain was launched in 2008. A minimum income standard (MIS) is the income required for a specified household type to reach a socially acceptable minimum living standard. It is based on research on what members of the public, informed by experts where appropriate, think is needed to achieve this minimum living standard. The 2008 MIS was based on research undertaken in Great Britain

The cost of a child in 2022

Families in 2022 are facing the greatest threat to their living standards in living memory. Much has been written about these pressures, but to put them into context, we need to understand what has been happening to children’s and families’ costs in recent years. The Cost of a Child reports have been produced annually for a decade, and this 2022 edition presents the latest evidence of what families need as a minimum, and how this compares to the actual incomes of low-income families. Overall, the cost of over £150,000 for a couple and over £200,000 for a lone parent  presents a daunting challenge to any family. Childcare has become an increasingly large component of this cost, for any parents who want to have the opportunity to work and who are not fortunate enough to have unpaid family care available. The persistent rise in childcare costs over the past decade means that childcare now comprises around 60 per cent of the lifetime cost of a child for a couple working full time, compared to around 40 per cent in 2012.</p

Minimum Income Standard for non-resident parents with some responsibilities for children

This report presents the findings of research looking at the needs and costs associated with a non-resident parent caring for a child some of the time. As a starting point, it makes a specific calculation of the minimum additional spending needed to maintain acceptable living standards by a separated parent whose child comes regularly for overnight stays. It finds that these costs are substantial. There has been growing recognition of the value of input in the raising of children from a non-resident parent, where this is possible. However, the associated needs and costs have gone unrecognised, particularly in the social security system, which ignores these costs by treating someone who is not the primary carer for a child as if they had no children, allocating all child-related benefits to the main carer. This makes life particularly difficult for low-income non-resident parents who may already be surviving on incomes too low to meet their needs, and who may be making child maintenance payments that also do not take their own child-related costs into account. Data on non-resident parents is fairly limited, with more focus on child maintenance arrangements, and a lack of non-resident parent perspectives in research on separated families. Even the number of non-resident parents with overnight care responsibilities is not known, although it is clearly widespread, and appears to be of the order of 1 million. Analysis of household income and poverty also takes account of child-related costs only in the family with primary care. This study starts to fill that gap, by extending the Minimum Income Standard (MIS) to consider costs for separated parents who look after children some of the time.</p

Living or surviving? Benefits, barriers, and opportunities for young people transitioning out of homelessness

This summary presents findings from research exploring the impact of low income and the social security system, particularly the low Universal Credit rate for under 25s, on young peoples’ living standards and opportunities to transition out of homelessness. The research was funded by the West Midlands Combined Authority Homelessness Taskforce, facilitated by St Basils, and carried out by the Centre for Research in Social Policy, an independent research centre based at Loughborough University. Supported accommodation can offer the stability and support young people who have experienced or been at risk of homelessness need to make the next steps into independence. Access to benefits can potentially help plug the gap left by family support and an adequate social security system is critical to young peoples’ ability to make this transition successfully. Entering work can be part of this journey, helping young people to move out of supported accommodation in a sustainable way. However, the complexity and mechanisms of the social security system can bring challenges for people in supported housing taking up work to facilitate this move. It is important to understand more about what this means for young peoples’ living standards, and their ability to access affordable housing and secure work that will support independent living. The findings add to evidence on the impact of current policies and broader structures affecting this group. The research aims to answer the following questions: 1. How does the social security level (and system) impact on young people’s ability to make ends meet and plan for their future housing situations? • What are the opportunities and barriers they face – to employment, housing, education, decent living standards, health? • What helps / hinders young people moving towards good quality, stable work and towards living independently in appropriate and affordable housing? What support is available for young people, and what could help? 2. How do young peoples’ employment circumstances interact with housing situations, and shape their ability to make ends meet and plan for the future? The study comprised 21 in-depth interviews with young people aged 17 – 25 across the West Midlands who were living in or had moved on from supported housing after experiencing or been at risk of homelessness. The interviews were conducted in August and September 2022, either face to face or online.</p