Increase in families forced to live on low incomes

MORE people are living on low incomes than during the recession in 2008 despite an increase in employment, according to a new study.

Families face an increased risk of falling below minimum-income standards even with more work and slightly better pay, said the Joseph Rowntree Foundation (JRF).

Among households struggling to make ends meet, six in 10 have someone in work, the research found.

Cuts in benefits have outweighed improved job prospects to contribute to an increase in the risk of having too little income to meet the minimum income standard (MIS) – based on what the public say is needed for an acceptable standard of living, said the report.

The report identified 11.6 million people living below MIS in 2013/14, 28 per cent of individuals covered by the research.

This was up from 21 per cent in 2008/09, an increase of about one third over the period.

But JRF officials said there were encouraging signs, such as growing employment and a return to growth in the economy which slowed the increases in the number of people falling short of a decent living.

Katie Schmuecker, policy and research manager at JRF, said: “Work is the best route to economic security and a better standard of living, and we welcome record levels of employment.

“But as well as more jobs, we need better jobs so all families can benefit from economic growth.

“Despite working full-time hours, more families are still falling short of what they need to make ends meet. We need the state and businesses to ensure people in work can achieve economy security.”