Inflation

The cost of a minimum acceptable standard of living has risen by a quarter since the start of the economic downturn, according to a new analysis from the Joseph Rowntree Foundation.

The report provides the 2013 update of the minimum income standard (MIS) for the United Kingdom, based on what members of the public think people need for an acceptable minimum standard of living. The MIS was first calculated in 2008.

by Meg Huby and Jonathan Bradshaw

Almost a quarter of households in England and Wales suffered from water poverty in 2009/10 and if water charges continue to rise more quickly than inflation, the extent of water poverty could more than double by 2033. This is causing problems both for low-income families, who find that water costs are putting ever more pressure on household finances, and for the water companies, who face increasing losses of revenue through non-payment.

Since water privatisation in 1989, water prices have been increasing faster than both inflation and average earnings. As the graph below shows water and related charges have risen faster than overall consumer prices (though less than fuel and lighting). This has posed particular problems for families on benefits as benefit increases have been pegged to the Consumer Prices Index.

Movement in water compared to CPI and other costs