New analysis from economists warns the UK is at risk of being caught in a ‘wellbeing poverty trap’. Deteriorations in physical and mental health and rising loneliness are set to leave 3.2 million adults – 1 in 20 people – enduring lives of unacceptably low quality. The wellbeing shortfall suffered is calculated as being equivalent to a financial penalty of £110 billion each year, without decisive government action.

Launched today, ‘Caught in a trap: Low wellbeing in the UK 2025’ is the second in think tank PBE’s annual “state of the nation” series, using official data and new modelling to provide the most comprehensive analysis yet of self-reported wellbeing across the UK population. PBE defines ‘wellbeing poverty’ as below the minimum acceptable level of quality of life – when people score their own life as 4 or less out of 10 on the ONS life satisfaction scale.

Encouragingly, the number of people in wellbeing poverty fell slightly in 2024, down by 200,000 compared to 2023. However, the report makes clear that this modest improvement masks a longer-term and deeply concerning trend: nearly half a million more people are now experiencing low wellbeing than before Covid in 2019.

The increases have been especially pronounced among younger adults, with 16–45-year-old men accounting for 170,000 of the post-pandemic rise; and women in the same age group making up a further 130,000. Declining general health, mental health, and rising loneliness are identified as key structural, long-term causes.

PBE’s new UK wellbeing projection, the first of its kind, forecasts a further rise of 300,000 people in wellbeing poverty by 2030 unless action is taken to prevent it. This is despite expected improvements in income and employment. Without targeted investment in health, mental health and social connection, the report warns the UK faces a “wellbeing poverty trap”, with an economic penalty equivalent to a £9 billion national pay cut.

The report also highlights housing as a major contributor. Renters are three times more likely than homeowners to be in wellbeing poverty. Private renters alone face a unique “renter wellbeing penalty” worth £3,700 per person per year. Encouragingly, recent reforms to renters’ rights in Scotland appear to have reduced this penalty. PBE estimates that similar legislation in England could lift 50,000 people out of wellbeing poverty.

Key findings from ‘Caught in a trap’:

  • 3 million UK adults are currently in wellbeing poverty.
  • In 2024 there was a 200,000-person improvement, but wellbeing poverty remains almost half a million higher than in 2019
  • Young people have borne the brunt: 170,000 more 16–45-year-old men and 130,000 more 16–45-year-old women now experience low wellbeing
  • Health deterioration has added 170,000 to wellbeing poverty since 2019
  • Mental health issues account for another 180,000
  • Loneliness has added 90,000 more
  • Without action, PBE modelling suggests an extra 300,000 people could be caught in wellbeing poverty by 2030. This would drive up the total penalty associated with wellbeing poverty from £101 billion in 2024 to £110 billion a year in 2030.
  • The additional economic penalty associated with this rise in wellbeing poverty is estimated at £9 billion per year

The report calls for the UK government to adopt wellbeing as a formal target, and to take bold action across public services, housing, and mental health to reverse the decline, working alongside the private and social sectors through partnerships, incentives and regulations.

The full report, ‘Caught in a trap: Low wellbeing in the UK 2025’, is available to read here.

Jon Franklin, Chief Economist at PBE and report author, said:
“These findings should set alarm bells ringing in Whitehall. In one of the wealthiest countries in the world, millions are still experiencing a poor quality of life with day-to-day lives shaped by disconnection and poor physical and mental health.

“We must move beyond GDP growth as the sole barometer of national progress. To build a society that delivers for everyone, we must prioritise wellbeing as a headline metric and set ambitious targets for reducing the number of people trapped in wellbeing poverty.”

Dan Wilson Craw, Deputy Chief Executive of Generation Rent, said:

“When we are forced to spend too much of our income on rent, the effects ripple across our lives. It means children are going to school hungry or older renters can’t afford to turn the heating on. It forces people into debt and homelessness. It traps people in renting and erodes hope.

“Homes are the foundations of our lives. We rightly have caps on our energy and water bills, but the same protections don’t exist to stop landlords from hiking rents way above what we can afford. The government must act urgently to stop soaring rents to improve our wellbeing and prevent us from being priced out of our homes.”

Bridget is a private renter. She said:

“I’ve been renting privately all my adult life, but getting a sudden rent hike still comes as a shock and has been very stressful, especially as the landlord gave us just one month’s notice. This is nearly a 20% increase!

“As a single parent living with my two children, with one income to live on, this will have a huge impact on my finances. I feel broken down by this system. Extreme damp in my previous home led to me being rushed to hospital with pneumonia. I hoped this new home would be better, but once again, I’ve suffered a huge blow to my security. Rents in my local area in County Durham are high, and I cannot simply jump to another more affordable option.

“I was already struggling to cover my essentials; this shock rent rise will put even more of a strain on me. My mental health has been badly affected, and I worry about the long-term impact this will have on myself and my family.”

Research methodology

PBE used ONS survey data to compare wellbeing between groups over time.  There are four standardised questions that are widely used across surveys in the UK to measure personal wellbeing. They ask people about satisfaction with their lives, their feeling that what they do in their lives is worthwhile, as well as taking a snapshot of their happiness and anxiety levels yesterday, with each question scored on a scale of 0 to 10. PBE categorises ‘wellbeing poverty’ as scoring 4 or less out of 10 on the life satisfaction scale.

PBE’s wellbeing forecasting modelling used data from Understanding Society to predict wellbeing based on trends in general health, mental health and loneliness as well as projections for income and economic activity from the Office of Budget Responsibility.

PBE used data from the English Housing Survey and Understanding Society to explore wellbeing by housing tenure and housing-related issues.