Disability, caring responsibilities and financial hardship in low-to-middle income households

Research examining how disability and unpaid caring responsibilities affect living standards, employment and financial security among low-to-middle income households in the UK.

Key messages

  • around one-third of adults in low-to-middle income families are disabled, a carer, or both
  • families that include both a disabled person and a carer face significantly higher rates of material deprivation than families without these circumstances
  • income levels are lower in households that include a disabled person or both a disabled person and a carer, even after controlling for demographic characteristics
  • disabilities and caring responsibilities can limit participation in paid employment, including reducing working hours or preventing work altogether
  • many carers report financial strain linked to the design of Carer’s Allowance, including strict earnings limits and administrative complexity
  • public spending on support services for unpaid carers has fallen substantially, with expenditure on carer support in England falling by around one-third since 2014-15

Policy implications

  • reforms to the social security system may be required to better support households with disabilities and caring responsibilities
  • Carer’s Allowance could be redesigned to remove sharp earnings thresholds and reduce administrative burdens for carers
  • employment policies should better support disabled workers and carers who want to remain in or return to work
  • restoring funding for support services for unpaid carers may help reduce financial pressures and improve wellbeing
  • broader policy responses may need to consider the interaction between disability, unpaid care and labour market participation

Gaps

  • the analysis focuses primarily on low-to-middle income households, so findings may not capture experiences across the full income distribution
  • further research is needed on long-term financial trajectories for households affected by disability and caring responsibilities
  • additional evidence would help clarify how policy reforms affect both carers’ financial wellbeing and care outcomes

Commentary
This report examines how disability and unpaid caring responsibilities shape financial circumstances for families across the UK. It shows that disability and caring are closely linked with lower household income, reduced employment opportunities and greater exposure to material deprivation, particularly among low-to-middle income households.

The findings highlight how caring responsibilities can affect participation in the labour market. Many carers report reducing their hours, changing jobs or leaving employment entirely because of the demands of providing care. At the same time, the structure of Carer’s Allowance – including earnings limits and strict eligibility rules – can create financial instability and discourage some carers from increasing their working hours.

From a social care equity perspective, the report illustrates how financial systems and welfare policies shape the distribution of care responsibilities and resources. When support for unpaid carers is limited, the financial consequences are often concentrated among households already facing economic disadvantage. Reductions in public spending on services that support carers, such as respite provision, can intensify these pressures and shift more responsibility onto families.

Overall, the analysis demonstrates that disability and unpaid care are central drivers of financial inequities within the UK. Addressing these challenges requires policy approaches that recognise the economic value of unpaid care while ensuring that carers and disabled people are not pushed into financial hardship as a result of the support they provide or require.

Persistent deprivation and health inequities across England

A longitudinal population study examining how overall and health-related deprivation changed across England between 2004 and 2015, showing persistent regional patterns and the continuing North–South health divide.

Key messages 

  • deprivation in England tends to remain concentrated in the same places over long periods 
  • northern regions continue to experience higher levels of health-related deprivation than southern regions 
  • regional deprivation patterns change slowly, suggesting structural economic and social factors drive inequities 
  • geographical patterns of deprivation can help identify areas with greater need for health and social care services 
  • place-based policies may be needed to address persistent regional inequities in health outcomes 

Policy implications 

  • prioritise investment in health and social care services in areas with persistent deprivation 
  • develop place-based strategies targeting regions with long-term disadvantage, particularly in the North of England 
  • strengthen cross-sector approaches addressing employment, housing and education alongside health and social care 
  • use deprivation data to guide resource allocation and service planning 
  • design interventions that respond to regional differences rather than using uniform national approaches 

Gaps 

  • the deprivation index measures relative deprivation, meaning it cannot capture national improvements or declines in living conditions over time 
  • some underlying indicators used in deprivation measures change between versions of the index, which may affect comparisons 
  • analysis at neighbourhood level may mask smaller pockets of extreme deprivation within communities 
  • further research is needed to understand the causes of persistent regional deprivation patterns 

Commentary 

This study examines how deprivation across England changed between 2004 and 2015. It shows that deprivation tends to remain concentrated in the same places over long periods. Areas that experienced high deprivation at the start of the study were very likely to remain deprived more than a decade later. 

One of the clearest findings is the continued North–South divide in health-related deprivation. Northern regions such as the North East and North West consistently experienced worse outcomes than southern regions. In some northern areas, improvements seen earlier in the study period had reversed by 2015. 

These patterns reflect broader social and economic conditions. Regions with higher unemployment, lower incomes and poorer housing conditions often also experience worse health outcomes. These wider determinants of health can contribute to long-term demand for health and social care services. 

The study also shows that deprivation often occurs in geographical clusters, meaning neighbouring communities may share similar levels of disadvantage. For service planners, this is important because clusters of deprivation may lead to concentrated demand for health and social care support. 

From a care equity perspective, the findings highlight how place shapes health outcomes. People living in areas with long-term deprivation may experience poorer health, greater need for services and fewer local resources to support wellbeing. 

Overall, the research suggests that reducing health inequities requires sustained and targeted policy action. Interventions that address the wider determinants of health, alongside investment in health and social care services, are likely to be important for improving outcomes in persistently deprived communities. 

Austerity and the uneven impact of local government cuts in English cities

A study examining how austerity policies affected English city governments and how reductions in local authority funding were passed on to poorer communities through changes to services and public spending.

Key statistics 

  • English councils lost around 27% of their spending power between 2010 and 2015, reflecting significant reductions in local government funding during the austerity period 
  • the most deprived local authorities lost about £268 per person in spending power (26%), compared with around £67 per person (9%) in the least deprived areas 
  • the historic ‘equalisation’ funding premium for deprived councils fell from 46% higher spending per capita in 2010 to 19% by 2016, reducing the capacity of poorer councils to meet higher levels of need 
  • in case study areas, around 45% of all savings were taken from services used more by poorer groups, reflecting the large share of spending on these services 

Key messages 

  • austerity policies significantly reduced local government funding in England, placing pressure on city councils 
  • poorer cities experienced larger funding reductions than more affluent areas because they relied more heavily on central government grants 
  • even where councils attempted to protect vulnerable groups, the structure of local government spending made it difficult to shield services used most by poorer residents 
  • reductions in universal services such as libraries, parks and neighbourhood maintenance can have greater impacts on disadvantaged communities 
  • austerity policies therefore contributed to a “regressive redistribution”, where financial pressures placed on cities ultimately affected poorer households most 

Policy implications 

  • national funding arrangements for local government should account for levels of deprivation and service demand 
  • restoring mechanisms that compensate poorer areas for higher social need could reduce inequities in service provision 
  • policies should consider how reductions to universal public services may disproportionately affect disadvantaged communities 
  • stronger protections may be needed for services that support vulnerable populations 
  • local and national policy should address how funding reductions affect the long-term capacity of councils to deliver social and community services 

Gaps 

  • the study focuses on a small number of city case studies, which may not represent the experiences of all local authorities 
  • further research is needed on the long-term impacts of austerity on specific services such as adult social care 
  • limited quantitative evidence exists on how service reductions translate into measurable outcomes for different population groups 
  • more research is needed to understand how local policy decisions mediate the impact of national funding changes 

Commentary 

This study examines how austerity policies affected local government services in English cities and how these financial pressures ultimately affected poorer communities. The research combines national financial data with detailed case studies of several English local authorities to understand how funding reductions translated into changes in services. 

Between 2010 and 2015, English local authorities experienced significant reductions in their spending power. The study shows that these reductions were not evenly distributed. Councils serving more deprived populations tended to lose a greater share of their funding because they relied more heavily on central government grants. When these grants were reduced, the financial impact was larger for poorer areas. 

One important finding is the erosion of the historic principle of equalisation in local government finance. This principle aimed to compensate poorer councils for the higher levels of social need they faced. As austerity policies reduced this funding premium, poorer councils became less able to provide services at levels comparable with more affluent areas. 

The research also highlights how the structure of local government spending affects how cuts are experienced. Many services provided by local authorities are used more frequently by lower-income households. Because these services make up a large share of council spending, it becomes difficult for councils to protect them completely when budgets are reduced. 

Even services used by all residents can affect disadvantaged communities more strongly when they are reduced. For example, cuts to libraries, parks or neighbourhood maintenance may have greater consequences for households with fewer private resources or alternatives. 

From a health and social care equity perspective, the study demonstrates how funding decisions made at national level can influence the distribution of services at local level. When deprived cities lose more resources, their ability to support vulnerable populations may decline. 

Overall, the study shows that austerity policies can produce uneven impacts across places and populations. Without mechanisms that account for differences in local need, reductions in local government funding risk reinforcing existing social and geographical inequities.

Health and wellbeing challenges in rural England

A report examining health outcomes, deprivation and service access in rural England, highlighting hidden health inequities and the need for locally tailored public health strategies.

Key statistics 

  • 19% of England’s population lives in rural areas, yet these areas cover around 85% of the country’s land area 
  • people living in rural areas generally have better overall health outcomes than those in urban areas, including longer life expectancy 
  • however, rural areas contain small pockets of significant deprivation and poor health outcomes that may be hidden within overall averages 
  • rural populations tend to be older on average, with higher proportions of residents aged 65 and over compared with urban areas 
  • the sparsity of rural populations and greater travel distances can affect access to services, employment and support networks 

Key messages 

  • overall health indicators in rural England often appear favourable, but they can mask significant local variations in deprivation and health outcomes 
  • rural populations are typically older, increasing demand for health and social care services 
  • geographic sparsity and distance between communities can influence access to services and support 
  • local authorities need detailed knowledge of rural populations to identify hidden health challenges 
  • better local data and more granular statistics are needed to reveal health disparities within small rural communities 

Policy implications 

  • improve local data collection to identify hidden deprivation and health needs in rural areas 
  • develop rural-specific public health strategies rather than relying on national averages 
  • strengthen collaboration between health services, social care providers and local authorities in rural communities 
  • consider transport, service accessibility and population ageing when planning rural services 
  • support community-based approaches that address local health needs in dispersed populations 

Gaps 

  • national and regional statistics often mask variation within rural communities 
  • limited granular data exists on health outcomes in smaller rural settlements 
  • further research is needed to understand how service accessibility affects health outcomes in rural areas 
  • more evidence is needed on the effectiveness of rural-focused public health interventions 

Commentary 

This report examines the health and wellbeing of people living in rural England and highlights the complexity of rural health outcomes. Rural areas cover most of England’s land area but contain a relatively small proportion of the population. Despite this, rural communities play an important role in the national health and social care landscape. 

On average, people living in rural areas experience better overall health outcomes than those living in urban areas. For example, life expectancy tends to be higher and some health indicators appear more favourable. However, these averages can hide important differences within rural communities. 

The report emphasises the presence of “hidden deprivation” in rural areas. Small pockets of poverty and poor health may exist within otherwise affluent rural districts. Because rural populations are smaller and more dispersed, these issues may be less visible in national or regional statistics. 

Rural populations also tend to be older than urban populations. Higher proportions of residents aged 65 and over increase demand for health and social care services, including community support and long-term care. 

Geography plays an important role in shaping access to services. Rural communities often experience longer travel distances to healthcare facilities, fewer public transport options and limited availability of specialised services. These factors can make it more difficult for people to access timely support. 

From a health and social care equity perspective, the report highlights the importance of recognising rural diversity. While some rural areas experience strong health outcomes, others face significant challenges linked to deprivation, ageing populations and limited service access. 

The report argues that local authorities need detailed understanding of their rural populations in order to identify and address these challenges. More granular data and locally tailored policies may help ensure that rural communities receive appropriate support and that hidden inequities in health and wellbeing are addressed. 

Geographical disparities in local government austerity

An analysis of how austerity policies have affected local government funding across Britain, with particular focus on the uneven geographical impact of spending reductions.

Key messages 

  • austerity policies introduced after 2010 led to substantial reductions in local government spending across Britain 
  • cuts were unevenly distributed, with more deprived areas experiencing greater reductions in funding 
  • reductions in central government grants significantly constrained the financial capacity of local authorities 
  • austerity has reshaped the relationship between central and local government, reducing local authority autonomy 
  • areas with the greatest social and economic need experienced the largest funding reductions. 

Policy implications 

  • funding allocation mechanisms may need revision to better reflect local levels of deprivation and service demand 
  • greater fiscal autonomy for local authorities could help address regional disparities in service provision 
  • national policy decisions on local government funding can have long-term consequences for social care provision 
  • monitoring regional impacts of fiscal policy is important to prevent widening geographical disparities. 

Gaps 

  • the study focuses primarily on funding distribution and does not examine detailed impacts on specific services such as social care 
  • limited exploration of the long-term consequences for service quality and outcomes 
  • further research is needed to understand how funding disparities translate into differences in care provision and access. 

Commentary 
This study examines how austerity policies reshaped the financial landscape of local government across Britain. The analysis demonstrates that reductions in central government funding were not evenly distributed, resulting in significantly different financial pressures across local authorities. 

The authors show that areas with higher levels of socioeconomic deprivation experienced larger reductions in government funding compared with more affluent areas. Because these same areas often have higher demand for public services, including social care, the effect of funding reductions can be particularly pronounced. 

The research also highlights changes in the relationship between central and local government. Reduced grant funding has constrained the capacity of local authorities to plan and deliver services independently, increasing reliance on locally generated revenue and limiting the scope for addressing rising service demand. 

From an inequities perspective, the findings show how funding mechanisms can reinforce regional disparities. When areas with the highest levels of deprivation experience the largest funding reductions, the capacity to deliver essential services such as adult social care may be weakened precisely where demand is greatest. This dynamic can widen gaps in access to support across different regions. 

Overall, the study contributes to understanding how national fiscal policy decisions shape the distribution of public services at a local level. Addressing financial inequities in social care will likely require funding approaches that more closely reflect the differing needs and service demands of local communities. 

The cost of caring for residential care workers

Research examining poverty, deprivation and living standards among residential care workers in the UK.

Key statistics 

  • residential care workers make up around 40% of the adult social care workforce 
  • residential care workers are twice as likely to experience poverty and food insecurity compared with health workers 
  • around 1 in 10 residential care workers experience food poverty 
  • the adult social care sector is projected to need approximately 600,000 additional workers by 2031. 

Key messages 

  • low pay and insecure working conditions place many residential care workers at risk of poverty 
  • deprivation among care workers is significantly higher than among comparable health workers 
  • cost-of-living pressures exacerbate existing financial insecurity 
  • workforce shortages are expected to increase demand for residential care workers 
  • demographic factors shape exposure to poverty and deprivation within the workforce. 

Policy implications 

  • improving pay and working conditions is central to workforce sustainability 
  • targeted financial and employment support is needed for residential care workers 
  • workforce planning must consider living standards as well as recruitment targets 
  • addressing poverty among care workers may support retention and quality of care. 

Gaps 

  • the report focuses on residential care workers rather than the wider social care workforce 
  • limited exploration of regional variation 
  • longer-term impacts of cost-of-living changes require monitoring 
  • further research is needed on the effectiveness of targeted support measures. 

Commentary 
This report provides a stark account of the financial realities faced by residential care workers in the UK. By documenting high levels of poverty and food insecurity, it challenges assumptions that employment in care provides a stable route out of deprivation. 

The findings highlight how poor pay and insecure conditions are embedded within the structure of residential care. As demand for care grows, these conditions risk undermining recruitment and retention, placing further strain on an already stretched workforce. 

For care equity, the report exposes a contradiction at the heart of the care system. Workers who provide essential support to older and vulnerable people are themselves disproportionately affected by poverty and deprivation. These disparities are not incidental but reflect how care work is valued and funded, with implications for workforce wellbeing and continuity of care. 

Overall, the report argues that improving outcomes for people who draw on residential care cannot be separated from improving the living and working conditions of the workforce. Addressing poverty among care workers is a prerequisite for building a fair, resilient and sustainable adult social care system.