economy
February 11, 2026
Britons working harder for less
Stagnant wage growth condemns British families to flatlining living standards amid the cost-of-living crisis, a think tank has found.
TL;DR
- British families' living standards are not expected to improve significantly within their lifetimes due to a collapse in income growth.
- Lower-income families have seen only 0.5% annual income growth over the last two decades, a stark contrast to the 1.8% growth seen in the prior 40 years.
- Factors contributing to the stagnation include the Ukraine conflict, increased energy and food prices, and a collapse in pay growth for workers.
- Despite working harder, families in the lower half of the income distribution have not reaped rewards in the form of higher living standards.
- The report calls for government intervention to revive national productivity, reform the tax and benefits system, and ease cost-of-living pressures.
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