• Study of 550,000 families shows 15% of London’s low-income households can’t pay the bills week to week
  • The biggest growth in cash-strapped families since 2016 was in Sutton (79%), Southwark (43%) and Camden (40%)
  • The number of London families who can’t pay the bills is expected to triple to 238,000 by 2021 if nothing changes

A new Living Standards Index for London tracks the financial security of 550,000 low-income families to reveal the pockets of poverty in our nation’s capital. Policy in Practice, the socially-minded software company behind the nation’s leading benefits calculator, has built the tool using data drawn from 18 London councils. The latest findings, released today, show that 1 in 7 (15%) of the London low-income families studied can’t pay the bills. The tool makes it possible for anyone to analyse one of the largest data samples about low-income Londoners which will be regularly updated with new information.

Policy in Practice’s Index identifies Enfield, Barnet, Camden and Sutton as ‘poverty hotspots’ with the highest proportion of families in dire financial straits. 20% of low-income families in Enfield and 25% in Barnet reported a regular cash shortfall. The data suggests much of the hardship is driven by rising rents in the private sector. In Enfield, 47% of low-income families rent privately and 45% of families in Barnet do, the highest rates in London.

Policy in Practice Director Deven Ghelani says his firm found a concerning rise in the number of cash-strapped households in the last two years. Using data from 18 participating councils, analysts were able to track the soaring financial insecurity of low-income households on a monthly basis and forecast their living standards into the future given rising rents, frozen benefits and comprehensive Universal Credit rollout.

“The data we’ve brought together through our London Living Standards Index shows what a lot of councils and community organisations have been saying: rising living costs and frozen benefits have combined to push more families into real hardship – where they simply don’t have enough money to pay the bills each week.

“This Index allows service providers and charities to see what low income families are experiencing in their area, and to see the pockets of need that are currently below their radars.”

Mr Ghelani says that between 2016 and 2018 the number of London families in the sample facing a weekly budget shortfall has risen by 21% to 81,000. The sharpest rises have been in Sutton (79%), Camden (40%) and Southwark (43%).

“Too many families facing a cash shortfall are one bill away from being evicted or running into dangerous debt. This is a wake-up call for councils and housing providers.”

Mr Ghelani says the index will be useful for London-based volunteers, charities, change campaigners, as well as London’s councils.

“Our leaders should harness this information to drive how they spend resources to reach those families in most need and prevent shortfalls from leading to hardship or homelessness. If the trends we’ve identified continue, London is going to see an extra 157,000 families at the end of their financial tether by 2021, putting strain on support resources, local authorities and charities.”

Deven Ghelani says many of the 18 councils involved in the project, which is funded by the Trust for London, are already using the Index and its tracker tools to better target support to families in need. He says more councils should get on board with sharing and using data to target and support families in need, given the benefits freeze and the impending rollout of Universal Credit.

Londoners themselves can also use Policy in Practice’s award-winning Benefit and Budgeting Calculator to get a free and anonymous personalised assessment of support they may be eligible for.

London’s poverty hotspots

London’s poverty hotspots as revealed in our new Living Standards Index for London

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How the housing crisis has deepened the cost of living crisis For most people housing is the highest living cost, yet the ongoing housing crisis in the UK is often overlooked when discussing the current cost of living crisis.

This webinar will explore the policy issues affecting housing affordability for low-income households, examining the scale of the problem as well as what can be done in both the short and long term.

We will highlight important work done by our clients using data to proactively address housing issues.

We will be joined by a leading local authority to discuss a recent project conducted with Policy in Practice that used benefits administration data to identify households in temporary accommodation that could be helped to move into the private rental sector.

Join this webinar to learn:

- How UK housing policy interacts with the cost of living crisis
- How local authorities are using data to proactively tackle housing affordability problems
- Actions you can take now to support your residents dealing with housing issues alongside the cost of living crisis
27/7/202210:30 BST1.3 hours
How to identify and support Just About Managing households using data The government has said it wants to make life easier for the 'squeezed middle' or people who are just about managing. These are the families who are not rich and they are also not those on the lowest incomes. Despite most being in work, they are struggling to meet their cost of living and it is no wonder.

The cost of living hit a 30-year high in February with inflation running at 6.2% and outpacing wage growth. Electricity bills were up nearly 20% in the year to January 2022, and gas bills by 28%, with further rises expected. Private rental prices across the UK went up by 2% in the year to January, the highest rate for five years; in the East Midlands that figure was 3.6%.

We know that one in five UK adults (10.3 million people) have less than £100 in savings, one in ten have no savings at all and more than a quarter have less than £500. Many are one broken appliance away from slipping into debt.

Local authorities want to help families who are struggling now to avoid a crisis down the line yet they have little or no visibility over people who are not already claiming benefits. Now though, analysis of other datasets can be used to get a clearer picture of families who are just about managing.

Join this webinar to learn:

- Who is just about managing now but at risk in the future due to the rising cost of living
- Which datasets can be used to identify families in danger of debt
- How local authorities can target support to avert crisis
21/9/202210:30 BST1.3 hours
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