Disposable income still lowest since 2005

Green Politics

Figures out today show that despite the economy being in recovery disposable income remains stuck where is was in 2005, reflecting real falls in wages.

Figures out today from the Office for National Statistics (ONS) show that despite the economy being in recovery disposable income remains stuck where is was in 2005, reflecting real falls in wages.

The Second Estimate of GDP estimated that the UK economy grew by 0.8 per cent in the third quarter of 2013, and back in July George Osborne wrote in The Times that “disposable incomes grew by 1.4 per cent above inflation last year despite the squeeze, the fastest for three years”.

But the figures cited by the chancellor were for total real household disposable income, a rise which has been largely driven by population growth rather than by rising living standards.

Figures published today actually show that real household disposable income has fallen dramatically since 2009, and still remains at a level first achieved in 2005.

Commenting on figures, TUC General Secretary Frances O’Grady said tomorrow the chancellor was “likely to repeat his claim that disposable incomes continue to rise. But official figures prove this is nonsense”.

“The figures used by the chancellor are meaningless to ordinary people who are concerned about their own money, rather than that of the nation. After all, you can’t pay the energy bills with other people’s pay packets,” she said.

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2 Responses to “Disposable income still lowest since 2005”

  1. V Hale

    Simple – halve “sin taxes” on cigarettes, alcohol, fuel etc

  2. bootsyjam

    I find it interesting that this article appears under one about Romanians taking cheap jobs. Why do you think incomes are falling-could it be the importation of cheap foreign labour thanks to the EU (which is all about driving down costs for multi-nationals). Surely not a link there?

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