Here, we highlight the impact some of the data available via the UK Data Service is having in research, policy and public conversations around the area of poverty, deprivation and the cost-of-living crisis.
Recent studies and reports have highlighted critical issues related to poverty, income and wealth distribution, and the impact of economic challenges on different parts of the UK population, with these findings providing insights into the evolving landscape of UK society.
The ethnic pension gap in the UK
Work is increasingly being undertaken to understand the ethnic pension gap in the UK.
According to research conducted by the Centre for Research on Ageing and the ESRC Centre for Population Change, there is a particular disparity in pension income between ethnic minorities and the white British population, with Bangladeshi and Pakistani communities being the most affected.
Data from the Family Resources Survey show that Asian pensioner families have the lowest gross income, highlighting the economic challenges faced by these communities.
An article in The Conversation discussing their research suggests that both cultural and structural factors contribute to this disparity.
For instance, lower lifetime earnings, interrupted work histories, and lower levels of pension savings among ethnic minorities are key factors. Addressing this gap requires targeted policy interventions, such as improving access to pension schemes and providing financial education to ensure that all communities can secure a stable retirement income.
Insights from the Joseph Rowntree Foundation
The Joseph Rowntree Foundation (JRF) has published several reports recently that provide a comprehensive overview of poverty and income standards in the UK.
One of their key reports, “UK Poverty 2025: The Essential Guide to Understanding Poverty in the UK“, outlines the persistent high levels of poverty, with 21% of the population living in poverty in 2022/23. The data indicate that child poverty has slightly increased, while pensioner poverty has slightly decreased, returning to pre-pandemic levels.
Another JRF report, “Households Living Below a Minimum Income Standard: 2008–2023“, reveals that 35.9% of individuals in the UK were living below the Minimum Income Standard (MIS) in 2022/23, a significant increase from 27.2% in 2008/09.
The data show that children in lone-parent families are particularly vulnerable, with 81.6% living below the MIS. These findings underscore the need for comprehensive social policies that address the root causes of poverty and provide adequate support for vulnerable families.
It’s worth noting that a key figure in the development of the Minimum Income Standard is Professor Donald Hirsch, who gave the keynote at our 2024 Data Impact event – Poverty in Data.
Wealth Distribution and Economic Challenges
The Resolution Foundation has published several reports and articles that shed light on wealth distribution and economic challenges in the UK.
One of their articles, “What’s Up?“, discusses the increase in total household wealth, which reached a record high of £13.6 trillion in 2020-22.
Data from the Wealth and Assets Survey indicate that while overall wealth has grown, intergenerational wealth gaps have widened, particularly benefiting those aged 65 to 74. This increase was driven by rising pension wealth, but the distribution of wealth remains uneven.
The data underscore the need for policies that address wealth inequality and ensure that economic growth benefits all segments of society.
The report “Whose Price is it Anyway?” compares the spending power of low-to-middle income families in Britain with those in other advanced economies.
The data show that British households face higher housing costs, which significantly impacts their overall spending power, making the UK more expensive for poorer families.
Addressing these high costs is crucial for improving the financial well-being of low-to-middle income households.
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