The average family today is almost twice as well off in real terms as people back in 1952 when the Queen came to the throne, according to new research to mark the Platinum Jubilee. Although inflation is running at a 40-year high of nine per cent and millions are struggling to cope with soaring cost of living, average weekly pay is 61 times higher than 70 years ago, while the state pension is 123 times more.
Despite big rises, petrol now costs 49 times more, a pint of milk is 26 times more and a mid-range TV is less than five times more, according to a study by cost-of-living champions Nous.co. The major price rises the country has faced since 1952 are in house prices - which have risen 185-fold from an average £1,891 to almost £350,000 – and in the cost of energy for homes.
Back in the 50s, few houses had central heating. Coal for the fire and the small amount of power used for light and minimal electrical items would have cost less than £1 a week. By the end of this year the average home will be paying £3,000 a year or almost £60 a week.
Nous.co CEO and founder Greg Marsh warned: “Despite the dreadful burden millions are facing from the cost-of-living crisis, we really are still doing pretty well compared to our grandparents. The big challenge now is to do everything we can to protect the hard-won lifestyles that have been achieved during the Queen’s reign.”
In 1952 the average take-home pay was £9 a week, compared to £556 now. Across the board, £1 then would be the equivalent of £30 now but pay has actually gone up by 61 times, which is more than twice that. Pensions, although still low, have gone up even more in percentage terms, from £1.50 a week to £185.
Only rich families could afford a car in 1952, when a mid-range Austin A30 cost £507, the equivalent of just under a year’s salary. Today a mid-range Ford Focus costs around £25,000, around 10.5months’ pay. One major purchase that has gone down dramatically in real terms is the TV. Not many families had one in 1952, but this who did would pay £80 for an 8-inch black and white model. A 55-inch Samsung is now £380, less than five times the price.
The price of food has broadly gone up by 30 to 35 times the 1952 figures, but cigarettes and beer have been hard hit. A pack of 20 king size would have cost 18p when Elizabeth became Queen but are £13.99 now, a 76-fold increase.
Beer was 9p a pint, compared to £4.20 or 45 times more now.
Nous.co CEO and founder Greg Marsh said: “This research shows just how important it is for everyone to keep track of their finances and know exactly what the current cost-of-living crisis means and could mean for the money in their pockets.
"Each household is different, with different providers and types of spend rising at different rates, so we urge people to get smart on exactly how the cost-of-living crisis will impact them by using online tools such as our free dashboard at www.nous.co.”
