Socioeconomic Barriers Cost UK Millions in Missed Opportunities and Billions in GDP

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Socioeconomic Barriers Cost UK Millions in Missed Opportunities and Billions in GDP

Socioeconomic Background and Missed Opportunities in the UK

up to 7.4 million people in the UK are missing out on career and educational opportunities due to their socioeconomic background. This number is equivalent to the combined populations of Scotland and Northern Ireland.

The research highlights the significant barriers faced by individuals from lower socioeconomic backgrounds. 70% of respondents reported encountering obstacles that limit their access to opportunities, with younger generations disproportionately affected.

A concerning trend emerged regarding the social stigma associated with socioeconomic status. Over a quarter of those surveyed felt pressured to conceal or downplay their background during job interviews or at work. This number jumps to 82% among 16-34 year-olds, with 39% admitting to actively hiding their background.

The study emphasizes the economic impact of addressing social mobility. Co-op and Demos estimate that improving access to opportunities could add £200 billion to UK GDP over the next decade. This underscores the urgent need for action from both the government and businesses.

Financial support for further education: 21%

19%

17%

14%

13%

10%

9%

9%

6%

6%

Ishitha Islam, a 21-year-old from London, shared her experience as a first-generation professional entering the workforce. "I still feel like I don't fit in at prestigious organizations because there is no one like me reflected in the higher ranks," she said. "Businesses need to realize that social mobility benefits everyone, bringing creative ideas and broader representation."

Claire Costello, Co-op's Chief People and Inclusion Officer, called the findings a wake-up call. "Millions are being held back from reaching their potential due to their background," she stated. "Promoting social mobility is not just morally right but an economic opportunity."

Co-op's 'Backgrounds into the Foreground' campaign urges the government to accelerate plans to make socioeconomic background a protected characteristic under the 2010 Equality Act. This would ensure protection against discrimination in the workplace and in education.

The study builds on the Social Mobility Commission's State of the Nation Report 2024, which highlights the stark disparities in opportunities based on socioeconomic background. Young people from higher professional backgrounds are more than twice as likely to pursue a degree and over four times as likely to secure a high-level professional role compared to their lower working-class peers.

With the UK facing growing disparities in social mobility, Co-op's campaign emphasizes the urgent need for policy changes and a concerted effort by businesses to create an inclusive environment where everyone, regardless of background, can access equal opportunities.