Brits no better off despite economic recovery

Brits are no better off now than they were in the midst of the recession, despite a significant increase in real gross domestic product (GDP). 

A report from the Office for National Statistics (ONS) has indicated that the average household is unable to benefit from the economic recovery, because the cost of everyday essentials has risen faster than cumulative real GDP growth. 

It suggested that the average household now spends 27.3 per cent of their post-tax income on essentials like rent, mortgage payments and bills, up from 19.9 per cent a decade ago.

For example, 20.6 per cent of Brits' post-tax income is typically spent on housing, whilst 3.1 per cent is now spent on gas and electricity. According to theweek.co.uk, that means Brits are now spending 72 per cent more on energy bills than they were ten years ago.

With other essentials like food rising faster than real GDP growth too, it's little wonder that Brits have no more disposable income now than they did when the recession was in full swing.

Reacting to the statistics, an ONS spokesperson claimed that it was unusual to see that a growth in GDP not causing a growth in disposable income. Thisismoney.co.uk reports that there is evidence of this occurring between 1955 and 2009, but not since.