British household wealth is lower than it was almost a decade ago as families continue to struggle with rising prices and meager pay growth, official statistics have revealed.
The Office for National Statistics (ONS) found that British household wealth has suffered more than other advanced economies, falling from fifth to 12th place among world’s developed countries. Using the new measure, net national income per head (NNI), the ONS disclosed that average UK income per head was £19.344 in 2011, lower than the figure recorded for 2005. This comes as people in the US, Germany, and France, have seen a faster recovery in their wealth during the recent financial crisis and subsequent recession. British households were “living beyond their means, spending not just from their income but also their savings, or borrowing to fund spending”, the ONS said. Former British Chancellor Alistair Darling also warned that Britain’s economy could be stuck in the doldrums for 10 years or more as economic conditions fail to improve.