Economy | Why professionals are worse off now than a decade ago

In August of 2019, the Office of National Statistics released data that evidenced a 3.9% rise in wage growth, whilst the estimated employment rate within the UK hit what the ONS states is the ‘best since comparative records began’ at 76.1% - this is the equivalent of around 32.81million people in employment.

However, new research conducted by the New Economics Foundation states that even after the hike in wage growth, Britons are in-fact £128 worse off per year than they were in 2008.

The New Economics Foundation states that figures used to calculate GDP – taking into account rising prices – previously failed to include essential items that affected the cost of living over the past decade.

The report also takes aim at former Chancellor George Osbourne’s tax increases as part of the coalition government, spearheaded by PM David Cameron, austerity measures – which it states were excluded from the calculation of the GDP.