UK Drops Down List of Affluent Nations After Decade of Stagnation, NIESR Finds
The UK has fallen significantly in the rankings of affluent nations, largely due to nearly a decade of welfare cuts and stagnant incomes, according to a report by the National Institute of Economic and Social Research (NIESR). Disturbingly, some of the poorest districts in the UK now rank lower than the impoverished areas in Slovenia and Malta. This decline raises alarms regarding the sustainability of welfare spending, especially with expectations of further cuts outlined in Rachel Reeves’ upcoming spring statement.
The NIESR report highlights that the bottom 10% of earners in regions like Birmingham have seen their living standards drop below those in certain parts of Slovenia. Contributing factors include weak productivity growth and tax changes that restricted financial support for struggling families. The study indicates that the UK has become both “neither a high-wage nor a high-welfare country,” with millions stuck in a cycle of low wages and inadequate support. This situation threatens the UK’s long-term reputation for high living standards, as pressure mounts on policymakers to reconsider welfare strategies.