The areas hardest hit by cost of living crisis in England are concentrated in both inner London and post-industrial towns in the North, according to new analysis of the English Indices of Deprivation.

While London boroughs such as Hackney and Brent rank among the most income-deprived, a significant cluster of the hardest-hit neighbourhoods is located in northern and coastal communities including Blackpool, Doncaster and Rotherham.

The data highlights a widening geographic divide, with households in these areas facing the greatest pressure from rising energy, food and housing costs—particularly ahead of expected increases in energy bills.

---

Top 10 areas hardest hit by cost of living crisis in England

1. Hackney 004E, Hackney (London)

Ranked the most income-deprived area in England, this part of Hackney faces severe financial pressure, with widespread reliance on low incomes alongside employment and health deprivation—making it the area hardest hit by cost of living crisis in England.

2. Blackpool 010E, Blackpool (North West)

This neighbourhood faces a “perfect storm” of deprivation, combining extremely low incomes with some of the worst living environment conditions in England, intensifying the impact of rising household costs.

3. Hackney 003A, Hackney (London)

Another highly deprived area in Hackney, this neighbourhood combines low incomes with severe housing and environmental challenges, increasing vulnerability to energy price rises and inflation.

4. North East Lincolnshire 002A, North East Lincolnshire (Yorkshire and the Humber)

This area experiences multiple forms of deprivation, with particularly poor living conditions compounding the effects of low household income and rising essential costs.

5. Doncaster 022C, Doncaster (Yorkshire and the Humber)

One of the most deprived areas in South Yorkshire, this neighbourhood faces deep-rooted income, employment and health challenges, leaving residents highly exposed to cost-of-living pressures.

6. North East Lincolnshire 019C, North East Lincolnshire (Yorkshire and the Humber)

Despite slightly better living conditions than some areas, extremely high income deprivation means households here remain under intense financial strain as prices continue to rise.

7. Birmingham 043E, Birmingham (West Midlands)

This neighbourhood experiences high deprivation across income, employment, health and education, making it one of the urban areas hardest hit by cost of living crisis in England.

8. Newcastle upon Tyne 027D, Newcastle upon Tyne (North East)

In this part of Newcastle, multidimensional deprivation—including low incomes and poor health outcomes—means residents are particularly vulnerable to rising living costs.

9. Brent 021B, Brent (London)

Located in outer London, this area combines high deprivation with elevated housing and living costs, intensifying the financial burden on already low-income households.

10. Rotherham 016A, Rotherham (Yorkshire and the Humber)

Severe living environment deprivation alongside low incomes makes this area especially vulnerable, with households facing mounting pressure from energy and housing costs.

---

What the income deprivation data shows

The income rank is based on the Income Deprivation Domain of the English Indices of Deprivation, which measures the proportion of people experiencing low income in small neighbourhoods known as Lower-layer Super Output Areas (LSOAs).

It includes:

• People receiving income-related benefits such as Universal Credit, Income Support and Pension Credit
• Children in low-income families
• Pensioners on means-tested support

Each area is ranked relative to others, with rank 1 representing the most income-deprived neighbourhood in England across more than 30,000 areas.

Why these areas are hardest hit

Neighbourhoods with high income deprivation are particularly exposed to the cost-of-living crisis because residents typically spend a larger share of their income on essentials.

As a result, even modest increases in:

• energy
• food
• rent and housing

can have a disproportionate impact.

This is why the areas hardest hit by cost of living crisis in England closely overlap with the country’s most deprived communities.

Energy price rises could deepen the pressure

The situation may worsen in the coming months, with expected increases in household energy prices likely to add further strain on already stretched budgets despite upcoming tariff changes.

For low-income households, energy is a non-negotiable expense. Any rise in prices risks:

• pushing more families into fuel poverty
• increasing reliance on government support
• widening regional inequalities

In the areas hardest hit by cost of living crisis in England, these pressures are likely to be felt most sharply.

---

Linking deprivation data to real-world insights

Working with neighbourhood-level datasets such as LSOAs can present practical challenges when combining with other sources.

Doorda addresses this by linking all LSOAs to postcodes, making it easier to integrate deprivation data with other datasets, including Doorda’s property and geodemographic insights.

A postcode-level view of inequality

Because the data is measured at neighbourhood level (typically around 1,500 residents), it reveals stark differences even within the same town or city.

This granular approach shows how the cost-of-living crisis is not evenly distributed, but concentrated in specific communities where economic resilience is lowest. You can build you own insights with 100s of additional datasets using Doorda’s SDK.

---

The bigger picture

While the rankings are a relative measure, they provide a clear snapshot of where financial pressure is most severe.

As inflation persists and energy costs rise again, the areas hardest hit by cost of living crisis in England are likely to remain at the centre of debates around inequality, support and regional economic recovery.

Frequently asked questions about the cost of living crisis in England