London, November 7 (RHC)-- A new study says the number of Britons living in absolute poverty is now 300,000 higher than previously thought. The study conducted by the New Policy Institute says there is direct connection between poverty and the cost of living in the UK. It notes that major increases in food and energy prices mean poorer households experience larger increases in their living costs than richer ones.

The report says stakes are high for the British people who are living in poverty especially given that the cost of energy over the past few years rose by 67 percent and the cost of food by 32 percent. Over the same period, the retail price index -- a key measure of the cost of a basket of goods and services -- jumped by 22 percent.

This comes as other reports earlier said that 5.2 million British people, or 22 percent of the workforce, receive less than the prescribed living wage, an increase of one percent over the past year.

The UK consultancy firm KPMP on Monday said in a report that 5.28 million employees across the UK earn less than 7.65 pounds per hour, while in the capital, London, the rate stands at 8.80 pounds.

The report also revealed that younger workers, women and part-timers are more likely to be paid less than the current living wage.