47% of UK adults (28.3 million people) experienced financial insecurity – or ‘economic precarity’ – in 2022/23, according to new research led by the London School of Economics (LSE). Given the UK is one of the richest countries in the world, it’s clear that rampant inequality – where 1% of the population have more wealth than 70% – is a factor.
The number of adults facing economic precarity has risen significantly since 2014/15, where it stood at 29% (16.7 million people).
Large numbers of adults experienced other forms of insecurity in 2022/23. A further 46% of adults experienced health insecurity. 27% faced housing insecurity, while 36% experienced work insecurity.
Austerity-driven economic precarity
The study found that the rise of economic precarity is driven by austerity cuts such as the benefit freeze and NHS underfunding, along with inflation in utilities, consumer and housing costs.
The research underscores the need to bring public services back into public ownership and deliver a Green New Deal. A publicly owned Green New Deal would remove profiteering from the energy system including the national grid, uphold the UK’s role in stopping the climate crisis, bring about cheaper renewable energy and shield the UK from volatile global gas markets, all in one fell swoop.
Instead, Labour appears to have abandoned its previous commitment to what chancellor Rachel Reeves called ‘securonomics’. Indeed, they are not nationalising utilities like Keir Starmer pledged to. And they are continuing with Tory austerity, whether it’s the illogical and cruel two child benefit cap or the cuts to disabled people’s support. All this is deepening people’s economic precarity.
Multiple insecurities
The report also found that 9% of people (5.2 million) experienced a combination of financial, health and housing insecurity in 2022/23. That’s up from 6% in 2014/15.
For some groups of people, that figure of economic precarity and its intersections is much higher. It includes:
- 32% of people who are economically inactive due to being long term sick or disabled
- 28% of unemployed people
- 27% of lone parents
- 21% adults living alone
The study notes that the surge in economic precarity negatively impacts society in multiple ways. It leads to mental health issues, difficulty raising children and makes it hard for people to take up further education. 57% of those with multiple insecurities felt constant strain.
It’s clear that austerity and inequality is having a destructive impact on the UK. We must reverse these trends.
Featured image via the Canary
