British workers missing out on £10,700 a year as living standards fall

The report said a living standards gap worth £8,300 had opened up between typical households in Britain and their average peers in Australia, Canada, France, Germany and the Netherlands. Photograph: Peter Byrne/PA

British workers are missing out on £10,700 a year after more than a decade of weak economic growth and high inequality, according to a major report warning that UK living standards are falling behind comparable rich nations.

In a damning report on the economy, the Resolution Foundation and the London School of Economics’ Centre for Economic Performance called for an urgent rethink of economic strategy after 15 years of relative decline.