The Decent Living Index
The Decent Living Index (DLI) was developed as a new index of inflation at a household level, funded by the Financial Fairness Trust. Like the Minimum Income Standard, this is based on household-specific baskets of goods and services that the public agree are necessary to maintain a decent standard of living. This basket provides more than subsistence, and allows people to meet their material needs with modest elements of choice and to participate in society. As such, the index moves beyond the macroeconomic purpose of the Consumer Prices Index (CPI) that is based around expenditure rather than needs.
The DLI has initially been calculated for two household types: a single, working-age female, and a couple with two children of pre-school and primary school age. Each household has a detailed and specific basket of goods and services, defined based on public consensus as part of the ongoing MIS research.
The findings provide some support for the view that households with lower incomes are facing greater financial pressures related to inflation than those with higher levels of income. This is related strongly to the rising costs of food and housing (which have higher than average inflation rates), which take up a larger than average proportion of expenditure for those on lower incomes.
Full report: https://www.financialfairness.org.uk/docs?editionId=da07dc32-f60a-4955-a176-b0b300b8dce0