In April 2025, millions of households across the UK are grappling with financial strain due to rising costs of council tax, water bills, and broadband services, prompting discussions about their economic status compared to previous generations.

Council tax has seen an average increase of 5% in England, with some regions in Scotland and Wales experiencing even steeper hikes, while water bills have risen by approximately £10 per month.

Additionally, broadband and mobile service providers have significantly raised their prices, surpassing inflation rates, further compounding the financial burdens on households already facing economic instability since the 2008 financial crisis and Brexit.

Renters are particularly affected, with over 30% of their income now going towards rent by 2024, up from about 25% in 2022, as private rental costs continue to escalate faster than wages, especially in London.

Housing costs play a crucial role in the perception of declining wealth, as the ratio of average house prices to average earnings has nearly doubled over the past two decades, from five times to approximately nine times.

Younger generations are facing higher barriers to home ownership and increased living costs, leaving them financially worse off than their predecessors at the same life stage, despite potential improvements in the affordability of technology and discretionary goods.

This economic landscape has led to a widening income inequality, as the bottom 20% of households have seen virtually no growth in real household disposable income (RHDI) since 2008, while the top 20% have rebounded more quickly.

Data from the Office for National Statistics reveals that RHDI rose steadily by about 3% annually from 2000 to 2008, but has stagnated since the financial crisis, with minimal growth recorded in 2023 and 2024.

Britain's productivity growth has also declined significantly, dropping from an average of 2% annually before 2008 to under 1% since, negatively impacting wage growth due to factors like under-investment in infrastructure and a shift towards lower productivity service jobs.

The rising costs of essential services, including childcare and groceries, which have increased faster than inflation, further complicate the financial landscape and contribute to declining living standards for many households.

As these economic issues come to the forefront, the upcoming local and mayoral elections in England are expected to reflect a broader societal debate about generational wealth and expectations.