Reports suggest that nearly 4 million people in London do not earn enough for a decent standard of living. This account for about 4 in 10 Londoners in households with incomes below the “Minimum Income Standard (MIS)”.
That equates to up to 4 million people in the capital and roughly 86% of single-parent families falling below the level needed for everyday living.
The Minimum Income Standard estimates what people need to afford a basic but dignified life, not luxury, including housing, food and utilities, transport, childcare and the ability to participate in normal social life.
Research shows that the biggest reason why so many Londoners fall below the Minimum Income Standard is housing costs, because private rents are far higher than social housing and now assumed for most households because social housing is so scarce.
Childcare costs are high compared with the rest of the United Kingdom. Wages and benefits are lagging behind living costs and income growth hasn’t kept up with rising costs in the capital.
A couple with two children needs roughly £49,500 a year in inner London for a decent standard of living and that figher is far higher than elsewhere in the country.
London’s living costs—especially rent—have risen so much that millions of people who are working are still earning less than what’s considered the minimum needed to live with dignity.
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