The Reality of In-Work Poverty and the Cost of Living Crisis

A new interview has shed light on the harsh realities facing thousands of working families, highlighting how low wages, rising living costs and unaffordable credit continue to trap people in financial hardship.

Speaking about the growing pressures on households, our RAS team Project Co-Ordinator Revd Joanne Thorns reflected on the changing nature of poverty, explaining that many of those seeking support are not unemployed but are working in low-paid jobs that simply do not provide enough income to cover essential living costs.

"Many people assume that those claiming benefits are out of work, the reality is that many are in work, but they're in low-paid employment. We're still seeing far too much in-work poverty."

The interview explored how rising rents, energy bills, food prices and council tax have left many families with little or no financial resilience. Even households that are carefully managing their budgets can quickly find themselves in crisis when faced with unexpected expenses such as replacing a broken washing machine or buying school uniforms.

The discussion also highlighted how poverty itself can make life more expensive. People who are struggling financially are often unable to access affordable forms of credit, leaving them reliant on higher-cost borrowing and payday lenders, creating an even greater cycle of debt.

Alongside the financial challenges, the interview addressed the emotional impact of living in poverty. Many people feel a deep sense of shame about asking for help, despite recognising that the circumstances they face are often beyond their control.

"There is a mixture of shame and anger, people ask themselves why they can't cope, but at the same time they recognise that low wages and rising costs are not their fault."

The interview also reflected on wider concerns about increasing inequality, questioning whether economic growth is benefiting everyone equally while many workers continue to struggle to make ends meet.

Drawing on years of experience supporting people in financial hardship, Joanne spoke movingly about the emotional toll on frontline staff and volunteers who witness the realities of poverty every day.

"Many of us who work alongside people facing financial crisis have left work in tears, or simply sat holding someone's hand because there was nothing else we could do."

This serves as a powerful reminder that tackling poverty requires more than emergency support. It calls for long-term action to improve wages, reduce inequality and ensure that working people can earn enough to live with dignity.

We remain committed to supporting individuals and families facing financial hardship while continuing to campaign for lasting change that addresses the root causes of poverty.

Watch the full interview, by Lonely Tower productions, to hear more about the challenges facing our communities and why action is needed to ensure everyone has the opportunity to thrive.