The Resolution Foundation has uncovered a concerning trend in the UK’s economic landscape.
According to their findings, typical household disposable incomes have seen a meagre increase since 2010.
Minimal Income Growth Over 14 Years
The Resolution Foundation’s analysis reveals that household incomes have grown by just £140 annually over 14 years. This represents a 7% total increase, which averages out to a sparse 0.5% per year. In stark contrast, the 14 years leading up to 2010 saw a much healthier 38% increase in disposable incomes.
Major Economic Shocks to Blame
Lalitha Try from the Resolution Foundation said, “While global economic shocks have been a major factor, Britain’s recent record is poor compared to both its own history and many of our European neighbours.”
Impact on Different Income Groups
Still, regressive tax and benefits policies have mitigated these gains, resulting in a total income rise of 13% for the poorest households, compared to just 2% for the richest.
Child Poverty and Family Size
Relative poverty levels have remained stable, but the number of children in large families living in poverty has increased. This is in contrast to a decrease among those from smaller families.
Political Implications
The Conservative Party, in power since 2010, is under scrutiny for its economic track record amid these challenges.
Complex Landscape of Income Inequality
The necessity for targeted policy interventions to support vulnerable households and foster more equitable income distribution is clear.
In summary, the Resolution Foundation’s report highlights the sluggish income growth that has left many UK households struggling.
The need for effective policy changes to address income inequality has never been more urgent.