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Cost-of-living crisis deepens inequalities for South Asian and Black communities in Britain

Monday, 20 October 2025 4:04AM UTC

Minority ethnic groups, particularly South Asian and Black families, face disproportionate hardship amid rising inflation, stagnant wages, and policy gaps. The Indian Workers Association warns that government measures risk further entrenching economic inequalities.

Britain’s Indian, Pakistani, Bangladeshi, and wider South Asian communities, alongside Black working-class families, are bearing a disproportionate burden in the ongoing cost-of-living crisis, warns the Indian Workers Association (Great Britain). The association has accused the UK government of safeguarding corporate profits at the expense of ordinary working families who are grappling with escalating prices and stagnant wages.

Sital Singh Gill, general secretary of the association, underscored the financial hardships faced by these communities, stating that while the government speaks of economic stability, many working-class families endure relentless struggle. The crisis is evident in soaring inflation rates projected by the International Monetary Fund, which expects the UK to experience the highest inflation among G7 countries this year at approximately 3.2 per cent, with only a slight easing anticipated by 2026. Everyday expenses remain steep, with grocery prices rising over 5 per cent and average annual energy bills reaching £1,755, as reported by Ofgem, the energy regulator.

Gill has criticised policies such as the fixed daily energy charges, which he believes unfairly penalise low-income and low-usage households, including pensioners. This system forces such households to pay the same standing charge regardless of energy consumption, intensifying the financial strain on those already struggling.

Research from organisations like the Runnymede Trust and analyses of UK government data reveal that minority ethnic households, particularly those of South Asian origin, are among the most impacted by this crisis. For instance, 22 per cent of Indian households fall below the low-income threshold after housing costs, a figure rising sharply to 47 per cent for Pakistani families and 53 per cent for Bangladeshi ones. Child poverty rates are similarly stark, with over a quarter of Indian-origin children living in poverty, climbing to 59 per cent for Pakistani children and 65 per cent for Bangladeshi children.

These families, who were essential frontline workers during the pandemic in roles such as taxi driving, healthcare, and factory labour, now face intensified economic hardships. Overcrowding exacerbates the crisis; official statistics indicate 4 per cent of Indian households and nearly one in five Bangladeshi households experience overcrowding, compared with just 2 per cent of White British families. Such housing pressures compound social and economic inequalities.

The Indian Workers Association has criticised government policies that it views as benefiting corporations while working families face rising taxes and deteriorating public services. Gill remarked poignantly on the paradox of paying high taxes akin to Scandinavian levels but enduring inequality reminiscent of American extremes. The association highlights the troubling reality of families resorting to food banks despite official claims of economic recovery.

Broader data supports the disproportionate impact of the crisis on ethnic minorities. For example, fuel poverty affects 15 per cent of Black households in England, the highest among ethnic groups, compared to 11 per cent of White households, though the average fuel poverty gap is largest among White households. Moreover, surveys show that in 2022 nearly 70 per cent of Black or Black British adults and 59 per cent of Asian or Asian British adults struggled to afford energy bills, compared to 44 per cent of White adults. The rising number of elderly individuals from ethnic minority backgrounds further underscores the urgency of addressing poverty and energy cost challenges in these communities.

In response to these challenges, the Indian Workers Association is advocating for targeted government action ahead of the Autumn Budget. Their demands include reforming standing energy charges to alleviate unfair penalties on low-usage households, addressing the ethnicity pay gap, regulating supermarket pricing to curb exploitative cost increases, investing in energy efficiency measures, and reversing cuts to local services that disproportionately affect minority families.

Gill reaffirmed the association’s commitment to pressing the Treasury and other government departments for meaningful reforms. “We, the Indian, Asian and Black communities, are part and parcel of the British working class,” he emphasised. “We helped build this country — and we stand shoulder to shoulder with all working people, Black, White and Asian alike, to demand fairness, dignity and justice.”

This collective call for fairness comes against a backdrop of data showing persistent and widening inequality in the UK, where ethnic minority groups remain significantly more likely to experience poverty. Poverty rates for Black, Asian, and other minority ethnic groups are consistently higher than for White British people, with profound implications for social cohesion and economic recovery prospects.

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Source: Noah Wire Services

More on this

https://khalsavox.com/opinion/british-asian-families-bear-brunt-of-cost-of-living-crisis-warns-indian-workers-association/ - Please view link - unable to able to access data
https://www.ethnicity-facts-figures.service.gov.uk/housing/housing-conditions/households-in-fuel-poverty/latest - In 2024, 11% of all households in England were in fuel poverty. Black households (15%) were the most likely to be in fuel poverty, while White households (11%) were the least likely. The average fuel poverty gap was £407, with White households having the largest gap (£432) and Black households the smallest (£270).
https://blog.policy.manchester.ac.uk/posts/2023/11/the-unequal-impact-of-the-cost-of-living-crisis/ - The cost-of-living crisis has disproportionately affected ethnic minority groups. In 2022, 69% of Black or Black British adults and 59% of Asian or Asian British adults found it difficult to afford energy bills, compared to 44% of White adults. Additionally, the number of over-65s from ethnic minority backgrounds increased by 70%, highlighting the need to address poverty and rising energy costs.
https://www.tribuneindia.com/news/london-letter/cost-of-living-crisis-britains-indian-asian-communities-bear-brunt-of-austerity/ - The Indian Workers Association (Great Britain) has criticised the UK government for failing ordinary families while protecting corporate profits. Rising energy bills and food prices are pushing thousands of Indian, Pakistani, Bangladeshi, and Black working-class families to breaking point. The International Monetary Fund projects the UK will have the highest inflation in the G7 this year, at around 3.2%, with only a modest decline expected by 2026.
https://theasianindependent.co.uk/asian-and-black-families-hit-hardest-by-inflation-says-indian-workers-association/ - The Indian Workers Association (Great Britain) has warned that rising inflation, energy bills, and food prices are pushing Asian, Indian, and Black working-class families in Britain to breaking point. The government’s current economic policy is failing ordinary families and leaving minority communities disproportionately exposed to the cost-of-living crisis. The International Monetary Fund projects the United Kingdom will record the highest inflation rate among G7 nations in 2025, around 3.2%, easing only slightly next year.
https://irr.org.uk/research/statistics/poverty/ - Black, Asian, and other minority ethnic groups in the UK are more likely to be in poverty than White British people. In 2018, 50% of Bangladeshis and 46% of Pakistanis were in the most deprived fifth of the population after housing costs, compared with 20% of White British people. In 2020, 46% of people in families where the household head was Black/African/Caribbean/Black British were in poverty, compared to 19% of those in families where the head of household was White.
https://www.easterneye.biz/british-asian-families-poverty-uk/ - A report by the Joseph Rowntree Foundation indicates that British Asian families are significantly affected by poverty in the UK. The report highlights that Asian households have higher rates of child poverty, deep poverty, and persistent poverty. Between 2019 and 2022, around half of people in Pakistani (51%) and Bangladeshi (53%) households, and around four in ten people in households headed by someone from an Asian background (39%), excluding Indian, Pakistani, Bangladeshi, or Chinese, were in poverty.

Noah Fact Check Pro

The draft above was created using the information available at the time the story first emerged. We’ve since applied our fact-checking process to the final narrative, based on the criteria listed below. The results are intended to help you assess the credibility of the piece and highlight any areas that may warrant further investigation.

Freshness check

Score: 7

Notes: The narrative has appeared in multiple outlets, including The Tribune India on October 18, 2025, and The Asian Independent on October 17, 2025. ([tribuneindia.com](https://www.tribuneindia.com/news/london-letter/cost-of-living-crisis-britains-indian-asian-communities-bear-brunt-of-austerity/?utm_source=openai)) The earliest known publication date of substantially similar content is October 17, 2025. The report is based on a press release from the Indian Workers Association (Great Britain), which typically warrants a high freshness score. However, the repetition across multiple sources may indicate recycled content. No significant discrepancies in figures, dates, or quotes were found. The inclusion of updated data alongside older material suggests an attempt to enhance freshness, but the core content remains consistent.

Quotes check

Score: 8

Notes: Direct quotes from Sital Singh Gill, General Secretary of the Indian Workers Association, appear in both The Tribune India and The Asian Independent articles. ([tribuneindia.com](https://www.tribuneindia.com/news/london-letter/cost-of-living-crisis-britains-indian-asian-communities-bear-brunt-of-austerity/?utm_source=openai)) The earliest known usage of these quotes is October 17, 2025. The wording of the quotes is consistent across sources, indicating potential reuse. No variations in wording were noted, and no online matches were found for these quotes prior to October 17, 2025, suggesting they may be original or exclusive content.

Source reliability

Score: 6

Notes: The narrative originates from the Indian Workers Association (Great Britain), a reputable organisation with a history of advocating for workers' rights and social welfare. ([en.wikipedia.org](https://en.wikipedia.org/wiki/Indian_Workers%27_Association?utm_source=openai)) However, the report is disseminated through outlets such as The Asian Independent and The Tribune India, which may not be as widely recognised in the UK. This raises questions about the reach and influence of the dissemination channels. The Indian Workers Association itself is a credible source, but the credibility of the reporting outlets is less certain.

Plausability check

Score: 7

Notes: The claims regarding the disproportionate impact of the cost-of-living crisis on South Asian and Black working-class families in Britain are plausible and supported by data from reputable sources. For instance, The Tribune India reports that 22% of Indian households are classified as low income after housing costs, compared to 47% of Pakistani and 53% of Bangladeshi households. ([tribuneindia.com](https://www.tribuneindia.com/news/london-letter/cost-of-living-crisis-britains-indian-asian-communities-bear-brunt-of-austerity/?utm_source=openai)) Additionally, Eastern Eye highlights that 34% of British Bangladeshi people live in social housing, which is seven times higher than the number of British Indians. ([easterneye.biz](https://www.easterneye.biz/bangladeshi-families-housing-uk-ons-data/?utm_source=openai)) The narrative's tone and language are consistent with typical reporting on social issues in the UK. No excessive or off-topic details were noted, and the structure appears focused on the main claim.

Overall assessment

Verdict (FAIL, OPEN, PASS): OPEN

Confidence (LOW, MEDIUM, HIGH): MEDIUM

Summary: The narrative presents plausible claims supported by data from reputable sources. However, the repetition across multiple outlets and the reliance on a press release from the Indian Workers Association suggest potential recycling of content. The credibility of the reporting outlets is less certain, which affects the overall assessment. Further verification from more widely recognised UK media outlets is recommended to confirm the accuracy and originality of the claims.

Cost of living
Ethnic minorities
Poverty
UK economy