Lower-income families face 137-year wait for living standards to double, says UK thinktank

"In the 40 years to 2005, the typical disposable income of working-age families in the poorest half of the population doubled, after growing by 1.8% a year on average once adjusted for inflation, according to the thinktank. In the final decade of that period, growth in disposable incomes rose by 4% a year and looked on course to double within 18 years."

"The thinktank defines lower-income families working-age households with disposable incomes below the national median and no one above the state pension age. It described this group of 13 million families as unsung Britain, saying their increased participation in the workforce since the 1990s and greater proportion of unpaid care for disabled adults have not been sufficiently rewarded in higher incomes or living standards."

"Ruth Curtice, the chief executive of the Resolution Foundation, said the figures showed that work was not a guaranteed route out of poverty. She added: The 13 million working-age families across the poorest half of the country are widely courted by politicians. But despite working harder, they have seen their disposable incomes stagnate, as they grapple with shrinking pay rises, higher costs and a growing struggle with their health and care needs."

Lower-income working-age families in the UK have experienced two decades of stagnation in disposable incomes, with growth after taxes and housing costs of just 0.5% since 2005. In the 40 years to 2005, typical disposable income in the poorest half doubled after growing by about 1.8% a year on average, and growth rose to about 4% a year in the final decade, putting incomes on course to double within 18 years then. The lower-income group includes roughly 13 million working-age households below the national median with no one above state pension age. Increased workforce participation and greater unpaid care have not produced higher incomes or living standards, creating pressure for faster pay growth to avoid further political disruption.

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