The Growing Financial Burden: Learning from British Muslim Responses to the Cost of Living Crisis

Britain faces a mounting economic crisis that’s exposing deep fault lines in our society. While the cost of living squeeze affects millions, its impact on British Muslim communities highlights both persistent inequalities and powerful lessons in community resilience that could benefit the entire nation. As mosques transform into food banks and community support networks mobilise, we’re witnessing how traditional Muslim values of mutual aid might offer broader solutions for societal challenges.

The statistics paint a stark picture: approximately 50% of British Muslims live in poverty, compared to 18% of the general population, according to the Muslim Council of Britain’s analysis. This disparity reflects wider patterns of economic vulnerability affecting various minority and disadvantaged communities across the UK. Recent research by Muslim Census, reported by Islam Channel, found that around one in five British Muslims have had to rely on food banks, with this figure rising to nearly 50% for those in lower income brackets. These numbers mirror similar hardships faced by other economically marginalised groups, suggesting systemic issues that require comprehensive solutions.

The impact of rising household costs has been severe across vulnerable communities, but particularly acute for British Muslims. Hyphen magazine reports that 54% of Muslims face difficulties paying energy bills, compared to one-third of the general population. An alarming 65% have taken on debt to cover basic household expenses, while one-third of Muslim families report having to skip meals to make ends meet. These challenges mirror those faced by other economically vulnerable groups, suggesting that solutions developed for one community could benefit many others.

Recent academic research by Sara Elsayed at the University of Nottingham, published in Frontiers in Sociology, reveals how “citizenship built-in inequalities” create barriers to economic stability. These include workplace discrimination, limited career progression opportunities, and geographic concentration in areas with fewer economic opportunities – challenges that resonate across various minority communities in Britain.

The Muslim community’s response to these challenges offers valuable lessons for broader society. Islamic principles of social responsibility and mutual aid have driven the creation of robust support networks that could serve as models for other communities. Mosques across the country have established food banks and warm spaces, while the systematic distribution of Zakat (charitable giving) demonstrates how traditional religious practices can be adapted to address modern social challenges.

This community-based approach has proven remarkably effective. The National Zakat Foundation now receives a request for support every 12 minutes, up from every 30 minutes previously, demonstrating both the scale of need and the community’s capacity to respond. Such local, faith-based initiatives offer valuable insights for developing wider community support networks across Britain. However, as reported in The BMJ, the UK faces a risk of “a downward spiral of worsening health and declining prosperity, each reinforcing the other.” Addressing these challenges isn’t just about helping vulnerable communities – it’s about strengthening our entire society’s resilience. Research from The Big Issue suggests that addressing economic disparities could significantly reduce pressure on public services, increase overall economic productivity, and enhance social cohesion.

The solution requires both immediate action and long-term structural changes. In the short term, we must expand culturally sensitive support services that can serve as models for helping other vulnerable communities. This should be coupled with improved awareness of and access to assistance programmes across all communities, ensuring that help reaches those who need it most. Additionally, developing financial education initiatives that draw on successful community-based approaches can help build long-term resilience across society. The experience of British Muslims during this crisis offers crucial lessons about both the impact of economic shocks on vulnerable communities and effective community-based responses. Their example shows how religious and cultural values can be mobilized to create resilient support systems—an approach that could be adapted by other communities facing similar challenges. 

The UK’s Autumn 2024 budget, introduced by Chancellor Rachel Reeves, has implications for those in lower-income brackets, including British Muslims. As many of these households face disproportionate financial pressures due to the cost-of-living crisis, the focus on funding public services, increasing taxes on high earners, and expanding social support, may alleviate some financial stress in urban, working-class communities where many British Muslims reside. The budget also addresses inflationary pressures that disproportionately impact poorer households. Key measures include targeted energy bill relief and no-interest loan schemes, which could provide crucial support for those such as British Muslims who may avoid traditional loans due to religious beliefs. While some aspects of the budget aim to ease financial burdens, there are concerns about the long-term sustainability of these initiatives. The impact of the Autumn 2024 budget on each household will depend on individual financial circumstances and how further policies are implemented to address systemic inequalities.

Looking to the future, structural reforms must tackle several interconnected challenges. Workplace discrimination and barriers to career progression continue to hold back talented individuals from reaching their full potential, limiting both personal and national economic growth. The financial sector needs to develop more inclusive services that work for all communities, while policy-making bodies must better reflect the diversity of modern Britain. Perhaps most crucially, we must address the geographic economic disparities that trap multiple communities in cycles of deprivation, ensuring that opportunity isn’t determined by postcode. As we move forward, we must recognize that addressing these disparities isn’t just about supporting one community – it’s about building a more resilient society for everyone. The Muslim community’s response to this crisis demonstrates how traditional values of mutual aid and social responsibility can help create effective modern solutions to social challenges. By learning from these examples and addressing systemic inequalities, we can work toward a more equitable and resilient Britain that better serves all its citizens.

Tahir Abbas, born in Small Heath in Birmingham, is currently Professor of Radicalisation Studies at Leiden University in the Netherlands. His recent book is Ethnicity, Religion, and Education in the UK (co-ed., with K. Iqbal, Routledge, 2024). His forthcoming book is Global Counter-Terrorism: A Decolonial Approach (co-ed., with S. Dutta and S.I. Bergh, Manchester University Press, 2025, forthcoming February). See more at tahir-abbas.com.

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