According to the Resolution Foundation, lower-income families in the UK may have to endure a staggering 137-year wait for their living standards to double, should the current rate of income growth persist. The report highlights a troubling stagnation in disposable incomes, which has been largely stagnant for the past two decades. This prolonged period of low growth has fostered a climate of unease among the populace, with the thinktank suggesting that unless substantial growth in wages occurs soon, there could be a risk of escalating political unrest in the UK.

The thinktank contrasts the current situation with the four decades leading up to 2005, when working-age families in the lower half of the income distribution experienced a robust increase in disposable incomes. During that time, typical disposable income doubled in real terms, driven by an average annual growth of 1.8% — a period when the economy was significantly more favorable for lower-income households. The final decade of this period showed an acceleration in growth, further suggesting a more optimistic trend that has since reversed.

Post-2005, however, the increase in disposable income for lower-income families has drastically slowed, with an annual growth rate of merely 0.5% after taxes and housing costs. This dramatic decline points to deep-rooted economic challenges that have impeded financial advancement for these families. If current patterns continue, the Resolution Foundation warns that not only will the living standards of lower-income families stagnate, but the broad economic and social implications could provoke significant political disruption, highlighting the urgency for policymakers to address these issues immediately.