UK's Poorest Now Worse Off Than Slovenia, Report Finds

A report by the National Institute of Economic and Social Research (NIESR) reveals that Britain's poorest households are now worse off than those in Slovenia and Malta, highlighting a decade and a half of stagnant income growth. Despite being the world's sixth-largest economy, the UK has seen a significant increase in inequality and slow productivity growth, which has contributed to near-zero growth in real wages. The report suggests that if UK wages had increased at the same rate as in the US since the 2009 financial crisis, workers would be approximately £4,300 better off. NIESR also criticizes the UK welfare system as one of the least generous among developed nations, urging the government to enhance benefits to cover living costs adequately. As Labour leaders prepare to cut benefits, there are warnings that these changes may further exacerbate the decline in living standards. Senior economist Max Mosley emphasized that reversing this trend is crucial for the government's growth agenda.