After Mark Carney, has life gotten easier for the average person in the UK?

In a few days, Canadians will elect a new Prime Minister. A political outsider, Mark Carney has been promoted as the man who can “Save Canada” after his work in the UK.

Mark Carney’s leadership at the Bank of England concentrated on stabilizing the UK economy during challenging periods, particularly after the financial crisis and the beginning of Brexit.

While he did a commendable job, the overall standard of living for many residents in the UK has not improved and, in some cases, has even declined.

Stagnant wages, rising living costs, and increased poverty suggest that life has become more challenging for the average person since 2013.

While Carney implemented policies to stabilize the economy after the 2008 financial crisis, broader economic and political factors have contributed to stagnation and a decline in living standards for many.​

So, while he did a good job at the Bank of England, the average Brit found life harder.

Economic Growth and Wages

Between 2009 and 23, median household incomes in the UK grew by only 6%, starkly contrasting the 30% growth expected in a typical 13-year period before 2008. This sluggish growth affected all income groups.

Real wages have also seen minimal increases. Since 2010, average weekly wages have risen by only $29.

In real terms, the UK lags behind countries like Germany and the US. Factors such as slow GDP and productivity growth and economic shocks like Brexit and the COVID-19 pandemic have contributed to this stagnation.​

Poverty and Income Adequacy

Over a third of the UK population struggles to afford basic goods and services.​ The proportion of people living in households below the Minimum Income Standard (MIS)—the income level required for a socially acceptable standard of living—increased from 27% in 2008 to 36% in 2023.

Children and single-parent families have been particularly affected. In 2023, 48% of children lived in households below the MIS, with 82% of children in single-parent families experiencing inadequate incomes.​

Health and Life Expectancy

Life expectancy gains in the UK have stagnated since 2010, with some areas experiencing declines. Experts link these trends to austerity measures that reduced spending on social services and benefits, leading to worsening public health outcomes.

Housing and Cost of Living

Housing affordability has deteriorated, with average home prices rising from $311,000 in 2010 to $480,000 in 2024. First-time buyers now face homes costing 5.2 times their earnings, up from 4.6 in 2010. Additionally, mortgage repayments have become more burdensome, consuming 39% of homeowners’ take-home pay, compared to a long-run average of around 30%.​

Essential costs like food, energy, and childcare have also increased. Food price inflation peaked at 19% in spring 2023, and average electricity bills rose from $430 in 2010 to $2,345 in 2023. Childcare costs have outpaced inflation, with the average price for 50 hours of childcare for a child under two reaching $525 a week in 2023.​

References

1. Insitutute for Fiscal Studies
2. The Times
3. Joseph Rowntree Foundation
4. Joseph Rowntree Foundation
5. The Times – UK Wages Rise By Just £16 A Week Since 2010

6. The Times – How life expectancy in the UK fell into a Soviet-style slump

7. The Guardian – Are consumers any better off after 14 years of Conservative government?

8. Britain’s poorest households worse off than those in Slovenia, think tank says