Tax rises and subsidy cuts behind drop in UK household incomes, says OECD

Real UK incomes fell 0.8% in the first three months of 2023, due to rising income and wealth taxes and spending on VATable goods. Photograph: Carl Court/Getty Images

A sharp rise in tax payments and cuts to energy subsidies in the UK were to blame for a steep fall in household incomes during the first three months of the year, according to the Organisation for Economic Cooperation and Development (OECD).

In a review of its 38 member states, the OECD said the UK was in the bottom half of the income table after households faced a steeper rise in tax payments than their counterparts in the US, France and Germany.