You now need £30,500 a year to ‘live with dignity' – here's what to do if you're struggling to keep up

A new study has found that a single person in the UK now needs to earn £30,500 a year just to live with dignity and take part in everyday life.

But millions of people are falling short of this basic standard, even when working full-time.

If that’s your situation, you’re not alone and there are practical steps you can take.

What’s the research?

The study was carried out by the Centre for Research in Social Policy (CRSP) at Loughborough University. It’s part of ongoing research into what’s called the minimum income standard (MIS), the income level the public believes is needed to live a decent, socially acceptable life in the UK.

The research is updated each year and funded by organisations including the Joseph Rowntree Foundation.

What is the minimum income standard?

MIS sets out how much different types of households need to cover essentials like:

• food
• clothing
• housing
• transport
• toiletries
• internet and phone bills
• a one-week UK holiday each year
• occasional leisure and hobby-related costs

It goes beyond just ‘survival’ and reflects what people feel is needed to live with dignity and feel part of society.

How much do different households need?

The research found that to meet the MIS, different types of households in the UK need the following annual incomes:

• A single working-age adult needs £30,500 per year.
• A lone parent with two children needs £61,000.
• A couple without children needs £43,000 between them, or £21,500 each.
• A couple with two children, aged three and seven, needs a combined income of £74,000.
• A single pensioner receiving pension credit needs £17,400, while one receiving only the full state pension needs around £19,000.
• A pensioner couple on pension credit needs £29,000, while those relying on just the state pension need slightly more at £29,200.

Unfortunately, many households are unable to reach these income levels, even when working full-time.

Who falls short?

Here’s how different groups compare to the MIS:

• Single adults working full-time on the national living wage (NLW) reach only 76% of MIS, leaving them nearly £7,000 short.
• Lone parents with two kids working full-time reach only 69% of MIS.
• Couples with two children, even with both parents working full-time, still fall short at 82% of MIS.
• Households relying on out-of-work benefits fare the worst:
• Lone parents without work get just 44% of the income needed.
• Couple parents out of work reach only 37% of MIS.

The only household type to meet MIS based on current wages is a couple without children, both working full-time on the NLW.

Why are so many people falling short?

Wages simply haven’t kept up with the true cost of living.

According to the Low Pay Commission, around 1.9 million UK workers were paid at or below the minimum wage in 2024, that’s 6.5% of the workforce, earning £23,875 or less per year.

Even the real living wage, voluntarily paid by some employers, doesn’t meet the MIS threshold.

What’s the difference between the national living wage and the real living wage?

• The national living wage is the legal minimum employers must pay workers. It's set by the government.
• The real living wage is a voluntary rate, based on the actual cost of living. It’s paid by over 16,000 accredited employers who want to ensure their staff can afford basic essentials.

What can you do if you’re struggling?

If you’re working and still finding it hard to get by, here are some steps that can help:

Use the government's minimum wage calculator to find out if you're being paid the right national minimum wage or living wage. 

If you think you’ve been underpaid, check out our handy guide outlining what you can do.

It’s also well worth making sure you’re on top of how much money is coming in and going out by using our budget planner.

Meanwhile, make sure you’re getting all the help you qualify for with our free benefits calculator.

Finally, if you’re finding it hard to manage your debts, then find out how we can help.