Fuel and travel costs are pushing prices up again
Thursday 5 November 2026
Inflation has risen to 3.1%, meaning everyday spending is getting more expensive just as household budgets are already under pressure.
Relative poverty
Having a household income below a set share of what the middle household receives in the same year.
What it means
In UK income statistics, relative poverty commonly refers to living in a household below 60% of the median income in that year. The median is the middle point: half of people live in households with more income, and half with less, after adjusting for the number of people in each household. The calculation uses income after taxes and benefits, and statistics can be shown either before or after housing costs. Because the line moves with middle incomes, a family's income can rise yet still fall below it if typical incomes rise faster. This is a measure of low income compared with others, not a full description of what a family can afford.
Example
Suppose the middle adjusted household income in a made-up year is £25,000. The 60% line is £15,000. A household with £12,000 on the same income basis is below that line. These numbers are illustrative, not today's official UK thresholds.
Why it matters
It shows whether people on low incomes are keeping pace with the living standards of households around the middle. Check whether figures are before or after housing costs when comparing them.
Also known as
relative low income
Related terms
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Absolute poverty
Having a household income below a line set using a reference year and then adjusted as prices change.
Read more -
Equivalised income
Household income adjusted so that households of different sizes can be compared more fairly.
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Income after housing costs
Household income after taking off specified housing costs, including rent or mortgage interest.
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Income before housing costs
Household income measured before rent and certain other housing costs are taken off.
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Material deprivation
Going without things or activities considered part of a decent standard of living because you cannot afford them.
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Means testing
Checking a person's income and sometimes savings to decide whether they qualify for help or how much they receive.
Read more -
Median household income
The middle household income when households are put in order from lowest income to highest.
Read more
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