Families in Britain are £20,000 worse off than 20 years ago

Families in Britain are tens of thousands of pounds worse off due to two decades of sharply declining living standards, a damning new report have revealed.

- Albert Toth, The Independent

A typical household today would be £20,000 richer had incomes continued at the rate of growth trending in 2005, the findings from the Resolution Foundation show. The influential think tank finds that incomes for working-age families have grown only seven per cent over the past 20 years. Meanwhile, essentials like energy, food, and rents have risen by as much as 120 per cent over the same period.

This level of stagnation is “unprecedented in modern times,” the foundation says, publishing its findings on its 20th anniversary. From 1995 to 2005, growth was recorded at 35 per cent. Had this continued, the typical family income today would be £51,000, but is instead £31,000. This would equate to £394 extra every week for the average worker. The level of income growth has varied between groups, with pensioner incomes growing by 21 per cent, and owner-occupiers by 14 per cent. Meanwhile, the incomes of working-age families in private rented accommodation have increased by just four per cent.