03 Jun 2024
In a new report, the Institute for Fiscal Studies (IFS) has found that the past 15 years have 'been the worst for income growth in generations'.
The IFS said that weak income growth has been with us since the Great Recession, and that the UK has been 'falling behind' most other countries.
According to the report, median incomes grew by just 6% between 2009/10 and 2022/23. It also revealed that there was a boom in jobs between the Great Recession and the Covid-19 pandemic, but 'very poor' average pay growth.
Commenting on the issue, Tom Waters, Associate Director at the IFS, said: 'Poor income growth has been an unfortunate feature of economic life in the UK over the last 15 years. And it has been slow growth for essentially everyone; rich and poor, old and young. This means that even while income inequality has been stable, progress on reducing absolute poverty has been painfully slow.
'Although there has been a widespread slowdown in growth internationally since the financial crisis, the UK has fallen from being one of the fastest growers prior to the Great Recession, to one of the weakest performers.'