living-standards-influences-full[1].pdf (461.94 kB)
Global influences on the cost of a minimum standard of living in the UK
report
posted on 2011-03-04, 15:15 authored by Donald Hirsch, Kim Perren, Viet-Hai PhungIn recent years, relatively large increases in the price of food, domestic energy and
some other essentials have caused the minimum cost of living to rise faster than the
general inflation rate. This creates an important domestic issue: how to prevent a fall
in living standards for disadvantaged groups whose incomes are often linked to
general inflation but whose living costs are rising faster than this. But it also raises
questions about the role of global influences on economic disadvantage in the United
Kingdom. The global cost of commodities and of imported consumer goods today
have important impacts on the price of essentials. This paper explores ways in which
this might affect the future ability of households in the UK to afford a minimum
acceptable standard of living.
This question can be addressed through the Minimum Income Standard (MIS), a
measure of how much money households in the UK need in order to reach a
minimum acceptable standard of living, based on what members of the public think.
An examination of the main areas of spending that comprise this standard shows
which have been the main drivers in recent years of rises in essential living costs,
susceptible to global influences on price. This analysis identifies three such
categories in particular: food, domestic fuel and clothing.
The price of these items in the UK is being influenced by a long-term rise in world
demand for commodities, and by limits to global energy use related to the supply of
fuels and efforts to contain their impact on the environment. These factors have
driven a general increase in food and fuel prices, especially since 2007, and are
likely to push these prices higher in the future. However, world commodity prices are
also highly volatile, partly because of fluctuations in world demand but also because
the prospect of large price hikes has attracted speculation, which can sometimes
accentuate price movements. UK consumers have been protected from the
extremes of commodity price movements, but nevertheless could in future face
uncertainty over the price of essentials that makes it harder for those on low incomes
to budget. (Continues...).
History
School
- Social Sciences
Department
- Communication, Media, Social and Policy Studies
Research Unit
- Centre for Research in Social Policy (CRSP)
Citation
HIRSCH, D., PERREN, K. and PHUNG, V-H., 2011. Global influences on the cost of a minimum standard of living in the UK. York: Joseph Rowntree Foundation.Publisher
Joseph Rowntree Foundation (© Loughborough University)Version
- VoR (Version of Record)
Publication date
2011Notes
JRF Programme Paper: Globalisation. All rights reserved. Reproduction of this report by photocopying or electronic means for non-commercial purposes is permitted. Otherwise, no part of this report may be reproduced, adapted, stored in a retrieval system or transmitted by any means, electronic, mechanical, photocopying, or otherwise without the prior written permission of the Joseph Rowntree Foundation.ISBN
9781859358160Language
- en
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