Labour fails to raise living standards

UK living standards are no higher than when Labour swept to power a year ago, highlighting the problems piling up for Prime Minister Keir Starmer as he struggles to contain the rise of Nigel Farage’s populist Reform UK party.

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Discretionary incomes tumbled 4.2% in April after a wave of bill increases and tax hikes, and failed to improve in May — the worst two months for households since the spring of 2022 when Russia's invasion of Ukraine sent energy prices rocketing, according to Retail Economics. In total, they have fallen 7.5% this year to levels seen just after Labour won a landslide victory in July last year, with the least well off hit hardest.

The bleak findings come as separate analysis shows the number of Britons with second jobs jumping to a record high and one in six workers struggling to pay their monthly bills.

The figures help to explain why political discontent is brewing in Britain despite Mr Starmer’s claim that wages growing faster than prices is a sign of things improving. Labour has been overtaken in opinion polls by Reform UK, which has surged in support as it promises tax cuts and handouts to lower-income Britons.