UK Living Standards Decline, Poorest Areas Now Lag Behind Slovenia and Malta

A decade of stagnant productivity and welfare cuts has eroded Britain's status as a high-income nation, according to a new report by NIESR.

The National Institute of Economic and Social Research (NIESR) found that Britain's poorest districts now rank below low-income areas in Slovenia and Malta when adjusted for cost of living.
Stagnant productivity growth and welfare cuts since the 2008 financial crisis have contributed to minimal real wage increases and declining living standards in the UK.
The UK now ranks among the least generous welfare systems in the OECD, with benefits falling short of covering essential household costs in 12 of the last 14 years.
NIESR estimates that UK workers could be £4,000 better off annually if productivity growth matched that of the United States.
The report calls for policy changes, including raising income tax thresholds and removing the two-child limit on benefits, to address poverty and stimulate economic growth.