Spring 2025 marks five years since the start of the first COVID-19 lockdown. Suddenly, in March 2020, the world seemed completely changed. All but the most essential services stopped. Millions were furloughed. And our key workers kept the country going through the pandemic.
At the time, it felt like nothing would ever be the same again. Half a decade later, how have living standards in London changed? Here, we look at five different charts that help paint a picture of if and how London has transformed.
Rising levels of worklessness & economic inactivity
Proportion of Londoners aged 16-64 receiving out-of-work benefits by benefit type (2013-2024 Q3)
Probably the most widely spoken about change we’ve seen since COVID-19 is the rise in working-age people out-of-work and relying on benefits.
Across London, in August 2024 – the most recent data we have – 14.4% of adults aged 16-64 were out of work and claiming a work-related benefit.
That’s compared to 8.2% before the pandemic. That means almost 385,000 more adult Londoners are out of work and on benefits than six years ago. And it’s a huge shift.
In some boroughs, the change has been even more dramatic, with several seeing a doubling of the proportions of adults on out-of-work-benefits - Brent, Redbridge, Newham, Harrow, Haringey, and Enfield.
Is worklessness a choice?
In a word, no. There are many reasons why someone might be out of work. 284,000 Londoners – disproportionately women – are out of work because they are looking after their family/home.
And nearly 300,000 Londoners are out of work because they are long term sick. The rising number of people out of work and the benefits bill is one of the biggest issues the government is grappling with. The government’s ambition to help more people into work is right – work is the best route out of poverty.
But it’s important that the financial support for those unable to work due to sickness or unpaid duties (like caring) is protected. The current levels of available support already fail to cover even the bare minimum.
Worsening homelessness crisis
People sleeping rough in London by ethnicity (2011/12 - 2023/24)
The COVID-19 pandemic showed how much can be achieved on homelessness with the right political will and investment. The ‘Everyone In’ policy provided temporary shelter to thousands of rough sleepers.
Unfortunately, this hasn’t reduced homelessness in the longer term. In 2023/24, the number of rough sleepers seen in London was 12,000, the highest on record, and a 35% increase on before the pandemic.
The makeup of those sleeping rough has changed, too. Since the year before the pandemic, the number of both Black and Asian Londoners sleeping rough has more than doubled, while the number of White rough sleepers has stayed roughly the same. There has also been an increasing number of women sleeping rough since – a rise of 33% since before the pandemic.
Decreasing levels of low pay
Proportion of jobs in London workplaces that are paid below London Living Wage by employment type (2005-2024)
14% of jobs in London were paid below the real Living Wage in 2024. While this is a slight increase on the previous year, it is still significantly below pre-pandemic levels. In 2019, 19.2% of jobs were low paid
In raw numbers, this adds up to around 180,000 fewer jobs paid below the minimum needed for a decent standard of living.
The drop is especially stark among part-time jobs. In 2019, 46% of part-time jobs in London were paid below the real Living Wage. Now, the figure is 38%.
This reflects the achievements of the real Living Wage Campaign in London, work we’ve been supporting for over two decades. The pandemic shone a light on the role of essential, often low-paid, workers. Despite the positive overall trend, there are still more than 600,000 jobs in London paid below the London Living Wage.
Fewer births
Births and deaths in London (2012-2023)
The ‘natural population growth’ of London – the net of births and deaths, without taking into account migration – has been decreasing in London for over a decade. But the pandemic seems to have accelerated this process.
There were 105,000 births in London in 2023 – the most recent year we have data for. This means that the number of births in London decreased by 12% since 2019, the year before the pandemic.
London has also seen a slightly higher number of deaths in the years since the pandemic, which means that London’s ‘natural population growth’ has dropped significantly – from 71,000 in 2019, to 52,000 in 2024, a drop of nearly 30%.
While this doesn’t directly tell us anything about living standards, it points to a wider trend, that people may be increasingly deciding not to start a family in the capital.
Falling overall poverty rate - but is this good news?
Proportion of people in poverty over time after housing costs (1996/97 - 2022/23)
London has always been home to a mix of communities, of different backgrounds, nationalities and ages. But this seems to be changing, and we’re worried about what this means for the future of our capital.
Up until the COVID-19 pandemic hit, London’s poverty rate had been roughly the same for decades. Between the start of the millenium and 2019/20, it stayed between 27% and 29%.
Since then, London poverty rate has dropped to it’s lowest level on record over two consecutive years. London’s poverty rate now stands at 24%, down from 27% pre-pandemic. this is still shockingly high and means that more than two million people are living in poverty.
But it also shows that something has been happening to our population make up. Compared to 2019/20, more than 200,000 fewer people in London are in poverty.
On the surface, this might look like something worth celebrating. But we know there are record numbers of people using food banks, homeless and struggling with the cost-of-living crisis.
We think the drop-in poverty rate means people simply can no longer afford to live in London and are leaving. Especially families with young children.
If this is the case, then our capital city is at a turning point.
Explore all more data on poverty and inequality on London’s poverty profile.
