The housing costs inflation rate for low-income households in the United Kingdom was noticeably higher than that of high-income ones between April 2022 and April 2023, during a serious cost of living crisis in the UK. As of June 2024, however, the inflation rate for high-income households was higher than that of middle or low incomes ones.

In June 2024, the household cost inflation rate (HCI) for low-income households in the United Kingdom was 1.7 percent, compared with 2.3 percent for middle-income households, and 3.3 percent for high-income households. Unlike other measures of inflation such as the consumer price index (CPI) the HCI isn't based on a fixed basket of goods, but is weighted to show how price changes affect different households by their economic status.

People in Great Britain's experiences of and actions following increases in their costs of living, and how these differed by a range of personal characteristics.

The Poverty and Social Exclusion Living Standards Survey provided crucial information about the living standards experienced by UK households, with particular interest in issues of income inequality, poverty and social exclusion. Survey fieldwork was conducted separately in Great Britain (England, Scotland, Wales) and Northern Ireland. In Great Britain the study was conducted by the NatCen Social Research on behalf of the University of Bristol. In Northern Ireland the study was conducted by Central Survey Unit (CSU) of the Northern Ireland Statistics and Research Agency (NISRA) on behalf of Queen's University Belfast.

Abstract copyright UK Data Service and data collection copyright owner.

The Households Below Average Income (HBAI) data presents information on living standards in the UK based on household income measures for the financial year.

HBAI uses equivalised disposable household income as a proxy for living standards in order to allow comparisons of the living standards of different types of households (that is, income is adjusted to take into account variations in the size and composition of the households in a process known as equivalisation). A key assumption made in HBAI is that all individuals in the household benefit equally from the combined income of the household. This enables the total equivalised income of the household to be used as a proxy for the standard of living of each household member.

In line with international best practice, the income measures used in HBAI are subject to several statistical adjustments and, as such, are not always directly relatable to income amounts as they might be understood by people on a day-to-day basis. These adjustments, however, allow consistent comparison over time and across households of different sizes and compositions. HBAI uses variants of CPI inflation when estimating how incomes are changing in real terms over time.

The main data source used in this study is the Family Resources Survey (FRS), a continuous cross-sectional survey. The FRS normally has a sample of 19,000 - 20,000 UK households. The use of survey data means that HBAI estimates are subject to uncertainty, which can affect how changes should be interpreted, especially in the short term. Analysis of geographies below the regional level is not recommended from this data.

Further information and the latest publication can be found on the gov.uk HBAI webpage. The HBAI team want to provide user-friendly datasets and clearer documentation, so please contact team.hbai@dwp.gov.uk if you have any suggestions or feedback on the new harmonised datasets and documentation.

An earlier HBAI study, Institute for Fiscal Studies Households Below Average Income Dataset, 1961-1991, is held under SN 3300.

Latest Edition Information

For the 19th edition (April 2025), resamples data have been added to the study alongside supporting documentation. Main data back to 1994/95 have been updated to latest-year prices, and the documentation has been updated accordingly.

Using the HBAI files

Users should note that either 7-Zip or a recent version of WinZip is needed to unzip the HBAI download zip files, due to their size. The inbuilt Windows compression software will not handle them correctly.

Labelling of variables
Users should note that many variables across the resamples files do not include full variable or value labels. This information can be found easily in the documentation - see the Harmonised Data Variables Guide.

HBAI versions

The HBAI datasets are available in two versions at the UKDS:

1. End User Licence (EUL) (Anonymised) Datasets:

These datasets contain no names, addresses, telephone numbers, bank account details, NINOs or any personal details that can be considered disclosive under the terms of the ONS Disclosure Control guidance. Changes made to the datasets are as follows:

• All ages above 80 are instead top-coded to 80 years of age.
• The variable for the amount of Council Tax liability for the household and pensioner flags for the head and spouse have been removed.
• All amount variables have been rounded to the nearest £1.
• A very small number of large households (with 10 or more individuals) have been removed from the dataset.

2. Secure Access Datasets:

Secure Access datasets for HBAI are held under SN 7196. The Secure Access data are not subject to the same edits as the EUL version and are, therefore, more disclosive and subject to strict access conditions. They are currently only available to UK HE/FE applicants. Prospective users of the Secure Access version of the HBAI must fulfil additional requirements beyond those associated with the EUL datasets.

Main Topics:

The HBAI data provide information on potential living standards in the United Kingdom as determined by net (equivalised) disposable income and allows for the analysis of changes in income patterns over time.

Characteristics of sampled households in the Living Costs and Food Survey.

This statistics shows the opinions of different age groups on their generation's standard of living in the United Kingdom (UK) as of 2016. The graph shows that the peak age group which considers their generation as having a better life than their parents is the pre-war generation (70 years and older). As the age of respondents decreases so too does the percentages of respondents’ positive perception of their life. The youngest generation surveyed (Generation Y) felt the least positive about the prospect of a better life than the previous generations.

Background:
A household food consumption and expenditure survey has been conducted each year in Great Britain (excluding Northern Ireland) since 1940. At that time the National Food Survey (NFS) covered a sample drawn solely from urban working-class households, but this was extended to a fully demographically representative sample in 1950. From 1957 onwards the Family Expenditure Survey (FES) provided information on all household expenditure patterns including food expenditure, with the NFS providing more detailed information on food consumption and expenditure. The NFS was extended to cover Northern Ireland from 1996 onwards. In April 2001 these surveys were combined to form the Expenditure and Food Survey (EFS), which completely replaced both series. From January 2008, the EFS became known as the Living Costs and Food (LCF) module of the Integrated Household Survey (IHS). As a consequence of this change, the questionnaire was altered to accommodate the insertion of a core set of questions, common to all of the separate modules which together comprised the IHS. Some of these core questions are simply questions which were previously asked in the same or a similar format on all of the IHS component surveys. For further information on the LCF questionnaire, see Volume A of the LCF 2008 User Guide, held with SN 6385. Further information about the LCF, including links to published reports based on the survey, may be found by searching for 'Living Costs and Food Survey' on the ONS website. Further information on the NFS and Living Costs and Food Module of the IHS can be found by searching for 'Family Food' on the GOV.UK website.

History:
The LCF (then EFS) was the result of more than two years' development work to bring together the FES and NFS; both survey series were well-established and important sources of information for government and the wider community, and had charted changes and patterns in spending and food consumption since the 1950s. Whilst the NFS and FES series are now finished, users should note that previous data from both series are still available from the UK Data Archive, under GNs 33071 (NFS) and 33057 (FES).

Purpose of the LCF
The Office for National Statistics (ONS) has overall project management and financial responsibility for the LCF, while the Department for Environment, Food and Rural Affairs (DEFRA) sponsors the food data element. As with the FES and NFS, the LCF continues to be primarily used to provide information for the Retail Prices Index, National Accounts estimates of household expenditure, analysis of the effect of taxes and benefits, and trends in nutrition. The results are multi-purpose, however, providing an invaluable supply of economic and social data. The merger of the two surveys also brings benefits for users, as a single survey on food expenditure removes the difficulties of reconciling data from two sources. Design and methodology The design of the LCF is based on the old FES, although the use of new processing software by the data creators has resulted in a dataset which differs from the previous structure. The most significant change in terms of reporting expenditure, however, is the introduction of the European Standard Classification of Individual Consumption by Purpose (COICOP), in place of the codes previously used. An additional level of hierarchy has been developed to improve the mapping to the previous codes. The LCF was conducted on a financial year basis from 2001, then moved to a calendar year basis from January 2006 (to complement the IHS) until 2015-16, when the financial year survey was reinstated at the request of users. Therefore, whilst SN 5688 covers April 2005 - March 2006, SN 5986 covers January-December 2006. Subsequent years cover January-December until 2014. SN 8210 returns to the financial year survey and currently covers April 2015 - March 2016.

Northern Ireland sample
Users should note that, due to funding constraints, from January 2010 the Northern Ireland (NI) sample used for the LCF was reduced to a sample proportionate to the NI population relative to the UK.

Family Food database:
'Family Food' is an annual publication which provides detailed statistical information on purchased quantities, expenditure and nutrient intakes derived from both household and eating out food and drink. Data is collected for a sample of households in the United Kingdom using self-reported diaries of all purchases, including food eaten out, over a two week period. Where possible quantities are recorded in the diaries but otherwise estimated. Energy and nutrient intakes are calculated using standard nutrient composition data for each of some 500 types of food. Current estimates are based on data collected in the Family Food Module of the LCFS. Further information about the LCF food databases can be found on the GOV.UK Family Food Statistics web pages.

Secure Access version
A Secure Access version of the LCF from 2006 onwards is available from the UK Data Archive under SN 7047, subject to stringent access conditions. The Secure Access version includes variables that are not included in the standard End User Licence (EUL) version, including geographical variables with detail below Government Office Region, to postcode level; urban/rural area indicators; other sensitive variables; raw diary information files (derived variables are available in the EUL) and the family expenditure codes files. Users are strongly advised to check whether the EUL version is sufficient for their needs before considering an application for the Secure Access version.

Occupation data for 2021 and 2022 data files
The ONS have identified an issue with the collection of some occupational data in 2021 and 2022 data files in a number of their surveys. While they estimate any impacts will be small overall, this will affect the accuracy of the breakdowns of some detailed (four-digit Standard Occupational Classification (SOC)) occupations, and data derived from them. None of ONS' headline statistics, other than those directly sourced from occupational data, are affected and you can continue to rely on their accuracy. For further information on this issue, please see: https://www.ons.gov.uk/news/statementsandletters/occupationaldatainonssurveys.

Latest edition information

For the second edition (March 2025) the DEFRA Family Food database was added to the study. This is available as a separate Access download zip file for those users who require it.

For the third edition (April 2025), the following previously unpopulated variables in the dvhh files were replaced with new versions: a111p (Rooms used solely by household - anonymised), a112 (Rooms shared by household), a114p (Rooms in accomodation - anonymised), p200p (Number of rooms occupied (DE basis) anonymised) and oecd (OECD Scale factor).

In June 2025, 62 percent of households in Great Britain reported that their cost of living had increased in the previous month, compared with 72 percent in April. Although the share of people reporting a cost of living increase has generally been falling since August 2022, when 91 percent of households reported an increase, the most recent figures indicate that the Cost of Living Crisis is still ongoing for many households in the UK. Crisis ligers even as inflation falls Although various factors have been driving the Cost of Living Crisis in Britain, high inflation has undoubtedly been one of the main factors. After several years of relatively low inflation, the CPI inflation rate shot up from 2021 onwards, hitting a high of 11.1 percent in October 2022. In the months since that peak, inflation has fallen to more usual levels, and was 2.5 percent in December 2024, slightly up from 1.7 percent in September. Since June 2023, wages have also started to grow at a faster rate than inflation, albeit after a long period where average wages were falling relative to overall price increases. Economy continues to be the main issue for voters Ahead of the last UK general election, the economy was consistently selected as the main issue for voters for several months. Although the Conservative Party was seen by voters as the best party for handling the economy before October 2022, this perception collapsed following the market's reaction to Liz Truss' mini-budget. Even after changing their leader from Truss to Rishi Sunak, the Conservatives continued to fall in the polls, and would go onto lose the election decisively. Since the election, the economy remains the most important issue in the UK, although it was only slightly ahead of immigration and health as of January 2025.

Focus group interviews were conducted between November and December 2010 in five different locations, including in each of the four territories comprising the UK: Bristol, Cardiff, London, Glasgow and Belfast. Separate group interviews were conducted amongst low income samples (5 groups), non-low income samples (5 groups), and mixed income samples (4 groups). These groups were also stratified by household type (11 groups) and minority ethnic status (3 groups)

Real wages and living standards: the latest UK evidence

People’s worries about the rising costs of living, using data from the Opinions and Lifestyle Survey collected between 27 April and 22 May 2022 and based on adults in Great Britain aged 16 years and over.

This is the proportion of children aged under 16 (0-15) living in families in absolute low income during the year. The figures are based on the count of children aged under 16 (0-15) living in the area derived from ONS mid-year population estimates. The count of children refers to the age of the child at 30 June of each year.

Low income is a family whose equivalised income is below 60 per cent of median household incomes. Gross income measure is Before Housing Costs (BHC) and includes contributions from earnings, state support, and pensions. Equivalisation adjusts incomes for household size and composition, taking an adult couple with no children as the reference point. For example, the process of equivalisation would adjust the income of a single person upwards, so their income can be compared directly to the standard of living for a couple.

Absolute low income is income Before Housing Costs (BHC) in the reference year in comparison with incomes in 2010/11 adjusted for inflation. A family must have claimed one or more of Universal Credit, Tax Credits, or Housing Benefit at any point in the year to be classed as low income in these statistics. Children are dependent individuals aged under 16; or aged 16 to 19 in full-time non-advanced education. The count of children refers to the age of the child at 31 March of each year.

Data are calibrated to the Households Below Average Income (HBAI) survey regional estimates of children in low income but provide more granular local area information not available from the HBAI. For further information and methodology on the construction of these statistics, visit this link. Totals may not sum due to rounding.

Data is Powered by LG Inform Plus and automatically checked for new data on the 3rd of each month.

Period life expectancy by age and sex for the UK. Each national life table is based on population estimates, births and deaths for a period of three consecutive years. Tables are published annually.

This is the proportion of children aged under 16 (0-15) living in families in absolute low income during the year. The figures are based on the count of children aged under 16 (0-15) living in the area derived from ONS mid-year population estimates. The count of children refers to the age of the child at 30 June of each year.

Low income is a family whose equivalised income is below 60 per cent of median household incomes. Gross income measure is Before Housing Costs (BHC) and includes contributions from earnings, state support, and pensions. Equivalisation adjusts incomes for household size and composition, taking an adult couple with no children as the reference point. For example, the process of equivalisation would adjust the income of a single person upwards, so their income can be compared directly to the standard of living for a couple.

Absolute low income is income Before Housing Costs (BHC) in the reference year in comparison with incomes in 2010/11 adjusted for inflation. A family must have claimed one or more of Universal Credit, Tax Credits, or Housing Benefit at any point in the year to be classed as low income in these statistics. Children are dependent individuals aged under 16; or aged 16 to 19 in full-time non-advanced education. The count of children refers to the age of the child at 31 March of each year.

Data are calibrated to the Households Below Average Income (HBAI) survey regional estimates of children in low income but provide more granular local area information not available from the HBAI. For further information and methodology on the construction of these statistics, visit this link. Totals may not sum due to rounding.

Data is Powered by LG Inform Plus and automatically checked for new data on the 3rd of each month.

Abstract copyright UK Data Service and data collection copyright owner.

The Living Costs and Food Survey, 2010: Unrestricted Access Teaching Dataset is based on the Living Costs and Food Survey, 2010 (LCF) (available from the UK Data Archive under SN 6945) and constitutes real data which are used by government, business and other organisations. The teaching dataset is a subset which has been subjected to certain simplifications and additions for the purpose of learning and teaching.

The main differences are:

• the number of variables has been reduced
• a reduced User Guide with codebook is provided
• some variables have been recoded to reduce the level of detail

Further information is available in the study documentation (see below) which includes a User Guide.

Main Topics:

Topics covered include: total expenditure; household income; socio-economic status; and household characteristics.