Slowdown in living standards 'so large that families today would be £20,000 richer'

25 Sep 2025

A report carried out by the Resolution Foundation has found that the scale of Britain's living standards slowdown over the last 20 years is so large that families today would be £20,000 richer if incomes had continued at the rate of growth trending in 2005.

The Foundation revealed that, since 2005, typical incomes for working age families in the UK have grown by just 7% over the 20-year period. It described this finding as a 'dramatic collapse' from the 35% growth recorded between 1995 and 2005.

According to the Foundation, had this growth continued, the typical family income today would be £51,000.

'As we look ahead, the task of raising living standards across Britain is bigger than ever – we simply cannot afford any more stagnation,' said Ruth Curtice, Chief Executive of the Resolution Foundation.

'This makes the work of the Foundation even more urgent as we redouble efforts to push for sustained family income growth.'