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UK household income growth gap lags behind OECD peers, data shows

The OECD has measures income growth versus economic expansion in recent years.

UK household income growth has lagged behind its international peers for the last eight years, with fresh data showing Britain has the largest gap between economic expansion and pay.

Statistics released by the Organisation for Economic Co-operation and Development (OECD) think tank reveal that the UK is the worst performer when tracking the lag between gross domestic product (GDP) growth and real household income per capita since 2010.

It means that while the UK economy has expanded, household pay has failed to keep apace.

The gap between GDP and household income per capita was 7.6 percentage points between 2010 and 2018.

Between the fourth quarter of 2015 to 2018, that gap was 3.9 percentage points.

It places the UK behind countries including France, Italy, Germany, the US and Canada.

Shadow chief secretary to the Treasury Peter Dowd said: “These OECD figures show the disastrous impact of nearly a decade of austerity on the living standards of families, with households in the UK losing out more than any other OECD member.

“The findings are a stark example of how brutal Tory pay restraint and austerity has led to living costs outstripping earnings for families.”

The findings come as the OECD released data for the first quarter of 2018, showing that real household income per capita growth increased to 0.2% following a contraction of 0.6% in the previous quarter.

It means income growth marginally outpaced real GDP per capita growth over the period, which the OECD has recorded at 0.1%.


From Belfast Telegraph