Charity Starts at Home: Tackling Financial Hardship Within Muslim Communities 

More than a decade of austerity, a global pandemic, and the ongoing cost-of-living crisis have combined to create an increasingly fragile economic landscape in the UK. For communities already living on the margins, the impact is particularly acute. Among them, British Muslims are disproportionately affected. Research by Muslim Census in 2022 underscored these realities. In response to deepening challenges, Muslim Census have launched a new survey on financial hardship, in collaboration with National Zakat Foundation (NZF) and Islamic Relief. This research will help build a robust evidence base that can inform meaningful policies to address persistent socio-economic inequalities. 

The Joseph Rowntree Foundation’s (JRF) latest report shows that one in five people were living in poverty in 2023/24, warning that poverty is now ‘deeper and more damaging than at any point in the last 30 years’. In this context, the role of charities becomes ever more critical. Muslim-led organisations are providing a vital lifeline by actively supporting vulnerable families through the distribution of Zakat here in Britain. International humanitarian work remains essential and should go hand in hand with assisting those on our doorstep that are experiencing hardship. Strengthening local support mechanisms is key to ensuring that no one in our communities is left behind. 

The Realities of Deprivation and Inequality 

Data consistently shows that British Muslim communities are among the most economically deprived in the country. Almost half of Muslims in England and Wales live in poverty, compared with 18% of the general population. They are also disproportionately concentrated in the most deprived local authority districts and are more likely than any other religious group to live in overcrowded, shared, or non-centrally heated housing. Muslim Census’ 2022 research highlights how these conditions translate into daily hardship, with families routinely forced into impossible choices such as whether to heat their homes or put food on the table. For many, making ends meet requires taking out some form of debt to cover urgent costs, exacerbating long-term financial insecurity. 

These challenges are not accidental or incidental; they are rooted in structural inequalities shaped by intersectional identities and experiences. Factors such as disability, ethnicity, and migration status compound disadvantage, limiting access to education, employment opportunities, and social mobility. This has a profound cumulative effect by leaving families and communities with fewer opportunities, reduced wellbeing, and poor economic security. The diversity within Muslim communities, defined by intersectionality, means that many face overlapping barriers that cannot be overcome through generic support or arbitrary policy interventions. 

Government Failures 

Government policy has largely failed to address these entrenched inequalities and has, at times, compounded them. JRF’s report illustrates that there has been no meaningful fall in poverty levels in the UK in the past two decades and warns that without targeted action, there will be no sustained reduction in poverty in the years ahead. Austerity-driven cuts have decimated local services, from youth centres to legal aid, especially in already deprived areas. Meanwhile, significant cuts to the welfare system have disproportionately affected lower income communities. As JRF concludes, “there remains a seeming lack of urgency and sense of direction” in addressing poverty and hardship beyond child poverty. 

Coupled with rising living costs, Muslim and other minoritised communities have been left in disproportionate hardship. The two-child benefit limit, which has only recently been lifted, offers a stark example having disproportionately affected Muslim families due to larger average household sizes. In this regard, government action has proven inadequate in tackling both immediate financial hardship and deeper structural drivers of poverty. Charities have often been left to fill the void. 

The Power of Localised Zakat 

Despite these challenges, Muslim communities remain among the most charitable in the UK, reading giving to causes they believe in. NZF estimates that between £250 million and £1.5 billion in Zakat is collected annually in the UK. Yet only 2% is distributed to Muslims at home. While the amount is still significant, as NZF distributed £6.32 million in Zakat to more than 25,000 British Muslims in 2024, it falls far short of the scale of need. Each month alone, up to 14,000 apply to NZF for financial support. 

Writing in last year’s edition of The Forum, MCF’s annual magazine, Dr Sohail Hanif underscores the importance of nationwide collaboration, a core pillar of NZF’s Community Zakat Programme. By working directly with partners across the country, NZF reaches people who might otherwise struggle to access NZF’s support or may not know their services exist at all. Meeting individuals face-to-face, from single mothers to recently homeless young people rebuilding their lives, the programme provides tailored support. This includes direct financial assistance, as well as signposting to other services such as counselling, food banks, and volunteering opportunities that can improve their circumstances. 

This is why targeted, local deployment of Zakat is essential. When directed to communities at home, it can provide much-needed relief, enabling those on the margins to afford essentials, secure stable housing, and move out of poverty. Over time, this contributes to reducing systemic inequalities and strengthening economic resilience, enabling greater investment in local communities, fostering social cohesion, and cultivating a more prosperous, thriving Britain. 

Looking Ahead 

Considering the scale of socio-economic challenges facing communities, charities must ensure sustained and strategic efforts to tackle them. Developing effective responses requires an accurate understanding of the nature and extent of need, grounded in the lived experiences of those most affected. NZF and Islamic Relief’s survey plays a crucial role in building this evidence base. 

Community members are encouraged to take part in the survey, and organisations are urged to share it widely so that the insights gathered truly reflect current realities. This must underpin targeted policy interventions that genuinely address structural inequalities. Through this effort, we must aim to build lasting, meaningful change that strengthens the resilience, dignity, and wellbeing of communities across the country.