UK now richer despite austerity

UK households are “much better off” now than they were during the Queen’s silver jubilee year despite the “miserable economic climate”, according to economists.

National income has fallen further and is recovering more slowly than it did during the recession of the late 1970s, with household incomes dropping by about 7 per cent in real terms over the last three years, the Institute for Fiscal Studies found.

But more spending goes on luxuries, the population is better educated and more workers are in white collar jobs, it said.

Hide Ad
Hide Ad

In a report to coincide with the Diamond Jubilee, the institute looked back to 1977 when the Queen celebrated 25 years on the throne. It found that a quarter of spending then went on food but that has dropped to 15 per cent, increasing disposable income.

Just over half the households had cars during the silver jubilee while three-quarters of homes now do. The proportion of working age people with degrees has increased eight-fold and there has been a “dramatic rise” in professional and managerial roles, research found.

IFS director Paul Johnson said: “Economic times are undoubtedly tough today. But it is easy to forget just how much better off we are now than we were just 35 years ago. Average incomes are twice as high now. We are much better educated and we have access to far more in the way of consumer durables.”

Related topics: