British families ‘nearly £9,000 worse off than comparable countries’

Families in the UK are nearly £9,000 worse off compared to households in other comparable countries, according to a new study.

A study published by the think tank Resolution Foundation and the London School of Economics (LSE) estimates that the income of the typical low- and middle-income family is a third less – or £8,800 worse off – than in comparable countries.

It turned out that the poorest households are even more disadvantaged income 40% behind when compared against five nations – Australia, Canada, France, Germany and the Netherlands.

This is due to a “toxic combination” of low growth and inequality.

Stagnation Nation, the interim report of the Economy 2030 Inquiry, puts the gap at a mix low growth, low productivity and high inequality that it had “disastrous consequences” for British families.

The Argus: Low growth and inequality have left British families worse off (PA)Low growth and inequality have left British families worse off (PA)

Torsten Bell, Managing Director of the Resolution Foundation, said: “Britain is a rich country with enormous economic and cultural strengths.

“But the latest balance sheet does not build on these strengths Slow growth Leaving Britain behind its competitors.

“This forms a toxic combination with the UK’s high inequality, leaving low- and middle-income households far poorer than their counterparts in similar countries.”

The report shows that UK wage growth has since fallen below zero financial crisis and eight million young workers have never experienced a period of sustained rising real wages.

It says the UK productivity gap with France and Germany has almost tripled since 2008 from 6% to 16% – equivalent to an additional £3,700 in lost output per person.

Mr Bell warned: “We need to reverse this but we are not on track to do so. We underestimate the magnitude of our relative decline and are far from serious about the nature of our economy or the magnitude of the changes needed to make a difference. That needs to change.”

https://www.theargus.co.uk/news/national/uk-today/20275106.uk-families-nearly-9-000-worse-off-comparable-countries/?ref=rss British families ‘nearly £9,000 worse off than comparable countries’

Fry Electronics Team

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