Posted on 04/13/2022 5:49:54 AM PDT by blam
Living standards in Britain continue a death spiral as wages fail to outpace inflation amid soaring energy costs, according to new data.
Bloomberg, citing data from the Office for National Statistics, said average earnings excluding bonuses for February dropped 1.3%, the most since 2013.
Negative real wage growth indicates millions of Britons are falling behind despite a strong labor market. Unemployment fell to 3.8% in the three months through February, the lowest since late 2019 and on par with levels from the 1970s. However, the hot labor market will force the Bank of England to raise interest rates in May, which could hinder economic growth.
The squeeze on incomes comes from several factors, including soaring energy, food and shelter prices, and tax hikes.
“Household incomes are being obliterated as wages fail to keep pace with the spiraling cost of living,” said Frances O’Grady, general secretary of the Trades Union Congress.
“We can’t go on like this. The Chancellor must come back to parliament with an emergency budget to help people through this crisis.”
High inflation has pushed the UK Misery Index, an economic indicator to gauge how the average person is doing, to three-decade highs, a sign discontent is emerging.
The Centre for Economics and Business Research (CEBR) points out that increasing household misery comes from soaring energy costs.
The average UK household will now pay 54% more for their energy bills compared to the six month period between October 2021 and March 2022 and a whopping 73% more than compared to a year ago. Meanwhile, petrol prices are up by 30% on the year while diesel prices have risen even faster, by 36%.
In short, the cost of living crisis has well and truly arrived in the UK. Over the coming months, the headline inflation rate is expected to rise a further 2.5 percentage points from its February level of 6.2%, far outstripping wage growth, which has trended downwards since the statistically inflated highs seen in the summer last year.
CEBR’s model shows a real household disposable incomes for this year could drop as much as 3% or about £2,320, inflicting the largest living standards decline since the 1950s when records began. Tents are becoming popular as people are pushed out of homes and onto the streets.
The Office for Budget Responsibility said living standards will not recover to their pre-pandemic level until 2024-25.
BIDENFLATION ...........................
Yet they’ll keep raising taxes to pay for the NHS and “free” healthcare. How long until the next British led revolution against the crown (government)?
Something very, very bad is coming.
L
Wow this AND bad teeth......how do the brits live in that hell on earth?
SMH
Whaddya mean, UK HOUSEHOLDS? It’s killing us here. Can’t buy hardly anything any more.
“The problem with socialism is, eventually, you run out of other people’s money.” - Margaret Thatcher
No-one says it's 'free'.
I pay National Insurance: currently £244/month deducted at source. The amount taken depends on wages. I've paid into the system all my working life.
I have no deductible, no co-pay and no out-of pocket, mind, and never get a medical bill ever.
https://www.hearingdirect.com/blogs/blog/how-long-is-the-wait-for-hearing-aids
I know people that come to the USA from Canada to get their medical procedures done, either due to the wait times or that they can’t get the procedure done in Canada.
In the UK, waiting 6 weeks just to get a hearing test and then another 3 months for the hearing aid seems excessive.
You idiot, they’re taking it out of you in taxes. Do your doctors and nurses work for free?
I literally said it's not free you moron - that's what National Insurance is for A tax.
So much for ‘’free’’ government health care.
Which bit of “it’s not free” are you having trouble with?
I pay £255 a month National Insurance, deducted at source.
I have:
No co-pay
No deductible
No out-of-pocket
I never ever get a medical bill or risk losing my house or trashing my savings because of medical debt.
We don't have people dying because they can't afford insulin, because we all pay towards healthcare. Think of it as some giant, national scale crowdfunder, yeah?
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.