New Times,
New Thinking.

  1. Chart of the Day
13 April 2022updated 26 Oct 2023 12:43pm

The UK’s living standards crisis is intensifying

As inflation hits 7 per cent, real wages are falling at the fastest rate since 2013.

By Polly Bindman

Wages in the UK are struggling to keep pace with inflation as consumer prices rise at the fastest rate in 30 years, according to the latest figures from the Office for National Statistics.

Driven by higher energy bills and petrol costs, consumer prices index inflation hit 7 per cent in March, surpassing the 6.7 per cent figure predicted by economists. In February, it stood at 6.2 per cent.


Wages, meanwhile, are rising at a slower rate, exacerbating Britain’s living standards crisis. In February, the average weekly earnings growth was 5.4 per cent. Excluding bonuses, the figure is lower still at 4 per cent, with real wages now falling at their fastest rate since 2013.

Following April’s energy price cap increase to £1,971 (up by £693), the living standards crisis is only likely to intensify, with households forecast to suffer the biggest annual fall in income since records began in 1956-57.

Select and enter your email address Your weekly guide to the best writing on ideas, politics, books and culture every Saturday. The best way to sign up for The Saturday Read is via saturdayread.substack.com The New Statesman's quick and essential guide to the news and politics of the day. The best way to sign up for Morning Call is via morningcall.substack.com
Visit our privacy Policy for more information about our services, how Progressive Media Investments may use, process and share your personal data, including information on your rights in respect of your personal data and how you can unsubscribe from future marketing communications.
THANK YOU

Content from our partners
Can green energy solutions deliver for nature and people?
"Why wouldn't you?" Joining the charge towards net zero
The road to clean power 2030

Topics in this article : ,