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.