Great news! On average, we're making more money than we were a year ago. But why don't we feel any better off? The answer is simple: the amount of money we need to spend just to live has increased more.
We're earning more money
For every £10 earned a year ago, the average person in the UK is now earning £10.21.
But we need to spend more
At the same time, the cost to live has risen. So, for every £10 spent a year ago, on for example groceries, we're now needing to spend £10.26.
More in, but even more out
So, for every £10 earned last year, people in the UK on average are 5p worse off.
Wages are rising, which is great news, but we need them to rise more than the cost to live.
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