Overview

• Typical household incomes rose by only £140 annually over 14 years, averaging 0.5% growth per year.
• Economic shocks such as the 2008 financial crisis, Covid-19, and high inflation contributed to slow income growth.
• Poorer households saw a 13% income rise due to cost-of-living payments and strong employment, while richer households saw only a 2% increase.
• The UK's income growth lagged behind other European countries like the Netherlands, France, and Germany.
• The number of higher rate taxpayers and pensioners paying income tax has significantly increased under current tax policies.