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Poverty is caused by a combination of low income (from work or benefits, or both) and high expenditure (on housing, childcare, energy, food and other essentials, the costs of all of which are at historic highs and are continuing to increase). The rising cost of living, combined with falling real household incomes from work or benefits, is having a disproportionate effect on low-income households, and so is pushing millions more people into poverty. Added to that, inflation is actually higher for those on low incomes, and poorer households can pay more for the same products and services.
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Statistics
Statistics
Substance
Substance
Stories
Stories
Surveys
Surveys
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Solutions
Explore the arguments
Benefits are falling in real terms
Benefits are falling in real terms
Disadvantage undermines people’s capabilities and opportunities
Disadvantage undermines people’s capabilities and opportunities
High levels of inequality lead to low levels of social mobility
High levels of inequality lead to low levels of social mobility
Higher levels of inequality make a wide range of social problems worse for everyone
Higher levels of inequality make a wide range of social problems worse for everyone
Income inequality is high by historical and European standards 
Income inequality is high by historical and European standards
Levels of trust and social cohesion are low
Levels of trust and social cohesion are low
Levels of wellbeing are declining
Levels of wellbeing are declining
Many high earners are paid unreasonably large amounts of money
Many high earners are paid unreasonably large amounts of money
Millions are unable to afford decent housing 
Millions are unable to afford decent housing
People from poorer backgrounds are less likely to get to and do well at university
People from poorer backgrounds are less likely to get to and do well at university
People from poorer backgrounds do less well at school
People from poorer backgrounds do less well at school
People from poorer backgrounds earn less money
People from poorer backgrounds earn less money
Poorer people don’t have a buffer against economic shocks
Poorer people don’t have a buffer against economic shocks
Socio-economic inequality leads to environmental inequality
Socio-economic inequality leads to environmental inequality
Socio-economic inequality leads to health inequalities
Socio-economic inequality leads to health inequalities
Socio-economic inequality leads to more crime and less effective criminal justice
Socio-economic inequality leads to more crime and less effective criminal justice
Socio-economic inequality leads to political inequality
Socio-economic inequality leads to political inequality
The best way to become wealthy is to be wealthy already
The best way to become wealthy is to be wealthy already
The education system can never totally compensate for disadvantage
The education system can never totally compensate for disadvantage
The nature of poverty is changing
The nature of poverty is changing
The rising costs of living hit poorer households harder
The rising costs of living hit poorer households harder
The structure of our economy leads to huge regional inequalities
The structure of our economy leads to huge regional inequalities
Too many people are on low incomes and in insecure work
Too many people are on low incomes and in insecure work
Wealth inequality is much larger than income inequality
Wealth inequality is much larger than income inequality
Wealth is taxed at much lower rates than income
Wealth is taxed at much lower rates than income
Explore the other indicators
Wealth
Wealth
Poverty
Poverty
Living standards
Living standards
Secondary school
Secondary school
Higher education
Higher education
Graduate outcomes
Graduate outcomes
Executive pay
Executive pay
Equal pay
Equal pay
Low pay
Low pay
Income tax
Income tax
Housing quality
Housing quality
Health outcomes
Health outcomes
Carbon emissions
Carbon emissions
Voice
Voice
Fair treatment
Fair treatment
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