Four in 10 Londoners cannot afford to ‘live with dignity’, new research shows

Nearly four million Londoners are living below the minimum income level to enjoy a decent standard of living, shocking new research has shown.

Analysis from Trust for London, seen by the Local Democracy Reporting Service (LDRS), shows that a majority of private renters, 1.1mn children and more than a third of pensioners are now living with less than what is needed for day-to-day life in the capital.

The situation has significantly worsened in the last decade, with the cost of a decent life — labelled the Minimum Income Standard (MIS) — around double what it was in 2014 across London.

This is primarily down to the capital’s “chronic” shortage of social housing, the report says, meaning families have to rely on the private rental market. Research participants concluded that social housing is no longer accessible for any household type in London due to the scarcity.

But renting for an adult is more than twice as expensive in outer London than other UK cities, increasing to three times as expensive in inner London.

It means that the income needed to live “with dignity” — defined as being “able to take part in the world around you in a meaningful way” — in London is far more than other UK cities. A couple with two children each need to earn £37,000 a year in urban UK compared to £49,500 each in inner and £46,900 each in outer London.

But incomes “continue to be stretched”, the analysis warns, with “few indications of improvements in the second half of the 2020s, particularly for those on the lowest incomes”.

“There is no quick fix here, but it is imperative that those in the positions to make positive changes in policy and to make bold decisions about funding start to do so,” the report concludes.

“Otherwise, there is a real risk that ten years from now little will have changed, and too many people will continue to live without all that they need for a dignified standard of living in London.”

Klara Skrivankova, director of grants at Trust for London said: “This new research exposes a stark truth: social housing is simply not there for the millions of Londoners who are struggling to get by.

“Rents in the capital are far higher than anywhere else UK, and more than 300,000 households are stuck on social housing waiting lists.

“The result is that countless Londoners are spending so much just to keep a roof over their heads that they can’t afford the basics. This is the everyday reality of the housing crisis.”

Dr Chloe Blackwell, who led the study, carried out by Loughborough University’s Centre for Research in Social Policy said: “For the first time since our research in London began, a minimum living standard in the capital now includes the cost of private rents for all households.

“We know that private rents are much higher than social rents and this really pushes up the income households need for reaching a minimum socially acceptable standard of living — to live with dignity in London in 2026. We also know that renting privately can be less secure and that there are justifiable concerns about quality and suitability.

“This significant change coming out of our research in London this year points to some very real challenges in the housing market and reveals the consequences of the depletion of social housing stock.

“People in London feel strongly that households at all stages of life should be able to expect a reasonable degree of choice, including about where they live. Instead, many find themselves trapped, paying rents which take up a substantial proportion of their income, meaning that what is left does not give them enough to live with dignity in London.”

The report also cites the “higher cost of public transport” for adding to the burden of many struggling Londoners.

“In inner London, this comprises an extra £24.20 per week, and in outer London, £40.08 per week,” the analysis says.

Single parents also have the cost of childcare to contend with — especially in inner London — spending, on average, 51 per cent more on the service than the rest of the UK.

A spokesperson for the Mayor of London told the LDRS: “The Mayor is determined to do all he can to support Londoners in the cost of living crisis. His work includes rolling out his historic free school meals programme for primary school children across the capital, freezing bus and tram fares and lobbying for measures including rent controls.

His Cost of Living Hub also provides information on a wide range of benefits and bill reductions, and he has invested millions in advice services which help Londoners realise their financial entitlements, as well as encouraging employers to pay the London Living Wage.”

Trust for London: How much does it cost to live in London? A Minimum Income Standard 2025.

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