More than three and a half million Londoners, including one million children, have an income below what is needed for a basic standard of living.
The latest update to the Minimum Income Standard London sets out the minimum required for a basic standard of living in the capital. This includes the cost of essentials and also being able to take part in society to a modest degree – such as an occasional meal out.
Rising food and energy costs mean that Londoners now need to earn substantially more for a minimum standard of living than the last time this research was carried out, in 2020.
The report shows that wages and the social security system are falling well short of providing millions of Londoners with an acceptable standard of living.
- Around 4 in every 10 people living in London (39%) have an income below what is needed for a minimum standard of living - compared to 28% in the UK as a whole in 2019-20.
- 3.49 million Londoners are living in households with inadequate incomes, including 1m children
- For single working-age adults in Inner London, it costs 66% more than their counterparts in the rest of the UK. This gap has increased over time.
- A single, working adult in London now needs to earn 30% more for a decent standard of living than in 2020, the last time we carried out this research.
- 48% of children living in London are in households with incomes below what they need for a decent living standard, compared to 40% in the UK in the same year. Nearly three quarters (73%) of children in lone parent households are living below MIS.
- Just more than a third of pensioners living in London (35%) have incomes below MIS, compared to 17% in the UK.
- Three-quarters of individuals in the capital with incomes below MIS (74%) are living in rented accommodation.