UK living standard remains 13% lower than pre-recession levels
A long-lasting recession, coupled with high inflation, has left national well-being in Britain more than 13% down on its level before the global financial crisis, new government data has found.
The Office for National Statistics (ONS) concluded that the impact on real living standards created by the worst downturn since the end of WW2 has been nearly double the fall in the country’s GDP output.
The Governor of the Bank of England, Sir Mervyn King, suggested on Tuesday night that the most recent growth figures, which are being released on Thursday, will illustrate that the United Kingdom may finally be exiting the double-dip recession.
However, despite the positive claims about the recession, data released by the ONS on well-being illustrates that Net National Income per head (NNI) held up in the early stages of the recession but has continued to decrease due to the squeeze on family finances resulting from rising prices.
Labour MP Catherine McKinnell, a shadow Treasury minister, said: “These figures show how the recovery from the global financial crisis we had two years ago has gone into reverse under this government. Families and pensioners are worse off because of the lack of jobs and growth under David Cameron’s failing economic plan.”
The study has further revealed that the decrease in living standards has been more visible and has lasted much longer than in the UK’s two preceding recessions, in the early 1980s and early 1990s.
King has concluded that, despite the likely increase in GDP, it was clear “that the recovery and rebalancing of the UK economy are proceeding at a slow and uncertain pace. At this stage, it is difficult to know whether some of the recent more positive signs will persist.”