Living on the edge: How to avoid falling into poverty amid rising costs

With the cost of living crisis continuing to rage, the government announcing plans to cut disability benefits, and wages barely keeping up, many in the UK are struggling to afford the essentials.

Research has found nearly a million people – including 200,000 children – in the UK are just £10 a month away from the poverty line, with millions of households around the country going without adequate food or heating. 

However, people can still take advantage of government grants, the benefits they may be entitled to and free financial advice to help them stay afloat. 

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Here’s what you need to know about managing your finances and avoiding falling below the poverty line during challenging times. 

How many people are living in poverty in the UK?

More than 16 million people in the UK are living in poverty, statistics from November 2024 found, while more than three quarters of people claiming universal credit and disability benefits have gone without essentials such as food and heating in the last six months due to spiralling costs. 

Trussell, which runs the largest network of food banks in the UK, found more than two in five (43%) claimants had skipped meals to keep up with other essential costs in the last three months.

According to Trust for London, households are considered to be below the UK poverty line if their income is below 60% of the median household income after housing costs for that year. For a single, working age person in 2022/23, that meant having a household income of £166 per week after housing costs. 

Households in “destitution” are defined by the Joseph Rowntree Foundation as those who have to go without two or more essentials – such as having a home, food, heating, clothing, or basic toiletries – in the past month because they couldn’t afford them. 

What can protect people from falling below the poverty line?

The Joseph Rowntree Foundation explained there are certain things that could protect people from “very deep poverty”, or alleviate some of the effects of poverty.

As well as strategies such as having savings to fall back on during challenging times and ensuring you have a secure pension to avoid poverty in older age, the organisation urged those facing poverty to get all of the benefits you’re entitled to – adding that as disabled people have a “high risk of very deep poverty”, benefits such as PIP can have a “significant impact”.

The organisation added: “Having friends, family and neighbours who can offer support does not necessarily increase your chances of escaping very deep poverty, but it does appear to reduce some of its worst effects.

“People who move into very deep poverty who can rely on friends a lot are around half as likely to be behind on household bills and council tax as those who cannot rely on them at all.

“The challenge for this strategy is that the experience of very deep poverty is an isolating one that weakens social ties.”

Am I eligible for benefits?

As the cost of basics continues to rise, experts say it’s important to ensure you’re receiving all the financial support available to you. The DWP estimated over £22bn in benefits would go unclaimed in 2024, meaning many are going without support they are entitled to.

Halide Kalfaoglu, benefits expert at Turn2us, told Big Issue: “Start by checking you’re receiving all the benefits you’re entitled to. Social security exists as a safety net to support people when their circumstances change, such as losing a job, developing a health condition, facing an increase in rent or mortgage costs, or having a child.”

Simon Trevethick, head of communications for StepChange, said the charity sees “time and time again that people aren’t taking advantage of all the help available to them”, adding that a tool on StepChange’s website can quickly and easily check what benefits you might be eligible for. The Turn2us Benefits Calculator is a similar tool.

Making sure you claim the benefits you’re entitled to, Trevethick explained, “can make the biggest difference between making ends meet and falling short each month.”

If you’re already on universal credit, you can also apply for a budgeting advance to pay for essentials. This is an interest-free advance on your universal credit that you can apply for if you meet certain criteria.

You could also look into the Help to Save scheme. People claiming working tax credit or universal credit could be eligible for the scheme, which allows you to boost your savings by 50p for every £1 saved.

Depending on your circumstances, you might also be eligible for charitable grants or funds. This Turn2us Grants Search is a useful resource, while other charities like MoneyHelper and StepChange could help you find available funds if you’re struggling to make ends meet.

Where can I go for help with debt?

Research from Debt Justice found a record 6.7 million people in the UK fell behind on bills in 2024 due to rising costs, but there are charities and organisations that can provide advice if you’re facing debt. 

A debt advisor can help you access support like the government’s Breathing Space scheme which gives temporary protection from your creditors while you get advice and make a plan. They can also create a budget and plan to manage your debt, or advise you as to whether you might be eligible for a Debt Relief Order.

Trevethick told the Big Issue: “The burden of dealing with problem debt can be overwhelming. We hear from a lot of people how much it affects their mental health, their physical health, their ability to sleep at night, and their relationship with with friends and family.

“Reaching out to an organisation like StepChange or Citizens Advice or National Debtline can really help to lessen that burden and share that problem.”

Could a government scheme help me find a job and keep me above the poverty line?

Many in the UK are struggling to find a well-paying job with a wage that covers the essentials, with up to one-in-eight young people not in employment, education or training in 2024, the highest level in more than a decade. 

According to Ben Harrison, director of the Work Foundation at Lancaster University, large numbers of young people are “actively looking for work but struggling to find it”. 

“When they do enter employment, Work Foundation analysis found young people are twice as likely to end up in severely insecure jobs as older workers – with potential implications for their future earnings, health and wellbeing,” he added.

However, there are places you can turn to that may be able to help you find secure employment.

Turn2Us has signposted several nationwide schemes that could help support you as you find a job, such as the Flexible Support Fund, which aims to help with the extra costs associated with finding a job, like travel expenses to attend an interview.

It also highlights local schemes, such as London’s Jobseeker’s Travel Discount Rail Card, or the Job Guarantee Scheme in Scotland, which aims to ensure everyone aged 16 to 24 has the opportunity of work, education or training. 

Kalfaoglu said “finding suitable jobs can be difficult, and many people are stuck in low-paid work with few chances to develop their skills”, adding 2.7 million people as of December 2024 who receive Universal Credit are in work, making up 37% of all people claiming. 

“It’s important to make sure you’re getting all the benefits and support you’re entitled to, including help with housing, low income, and childcare,” she added. 

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