Minimum Income Standard 2025 Highlights Continuing Shortfalls

The Joseph Rowntree Foundation (JRF) and the Centre for Research in Social Policy at Loughborough University have published the latest update to the Minimum Income Standard (MIS) – the income required for households to reach a minimum, socially acceptable standard of living in the UK.

The 2025 report shows that, while inflation has stabilised compared to recent peaks, many households remain a long way from achieving an adequate living standard.

Key Findings Include:

Despite increases in the National Living Wage (£12.21/hour in April 2025), a full-time worker reaches only 76% of MIS. A couple with two children, where one parent works full-time on the NLW, achieves just 66%, and lone parents working full-time reach 69%. Out-of-work households fall even further below the threshold.

These figures underline that paid work is not always enough to guarantee a dignified standard of living. Families with children are particularly disadvantaged, especially in the private rented sector where Local Housing Allowance is frozen, leaving growing shortfalls between actual rents and support available.

Why This Matters For Rural Communities

Although the MIS is not rural-specific, it strongly echoes the challenges reported to RSN by our members. Rural economies are often described as job rich but career poor: employment rates are higher than urban areas, yet wages are consistently lower. Households also face higher everyday costs particularly in transport, childcare, and accessing services, meaning that even if they reach the MIS threshold, their income stretches less far in rural areas.

At the same time, rural families are disproportionately reliant on the private rented sector, where the freeze in housing support is pushing many deeper below the MIS benchmark. Added to this, reduced access to everyday services such as banking, post offices and public transport increases pressures on household budgets and limits opportunities to fully participate in society.

You can read the full JRF report here

Kerry Booth, Chief Executive, Rural Services Network: "This report reinforces the need for fair funding and targeted policy that recognises rural realities. Without measures to boost incomes, provide affordable housing, and maintain essential services, rural households will continue to face greater risk of living below the MIS, even when working full-time. Unlocking the potential of rural communities is not just about addressing disadvantage, but about enabling rural areas to fully contribute to national prosperity. With the right investment and support, rural places can drive growth, innovation and resilience across the UK".