Average UK household lost at least £23,000 in decade since financial crash

• 10 Years On campaign launches tool allowing public to calculate how much they’ve lost out since 2008 crash

• Analysis comes ahead of rally outside the Bank of England on 10th anniversary of Lehman Brothers collapse, with speakers including John McDonnell MP

London, UK, 13 September 2018 – The 10 Years On campaign has today released analysis revealing that the average UK household has lost out by over £23,000 in real terms since the  financial crisis in 2008.

Using data from the Department for Work and Pensions and the Office for National Statistics (ONS), the campaign estimates the additional disposable income that households would have received if income growth had continued at its pre-crisis levels. It calculates that the median UK household’s disposable income of £494 per week is £81 lower than if income growth had continued its average trend of 2.58% per year in the decade before the crash. Following the crisis income growth has fallen sharply to an average 0.27% per year, equating to a cumulative loss of £23,436 for the median household over the whole decade since 2008.

The analysis comes ahead of a rally outside the Bank of England from 11.30am on Saturday 15th September to mark the tenth anniversary of the collapse of Lehman Brothers. Politicians, unions and campaign groups including Shadow Chancellor John McDonnell MP, Kirsty Blackman MP, Molly Scott-Cato MEP as well as Sisters Uncut and Disabled People Against Cuts will gather to address the rally.

The 10 Years On campaign are also launching ‘what am I owed’, an online tool which will allow the public to calculate how much they have lost out since the 2008 financial crisis. Users will be able to input their earnings and receive an estimate of how much their weekly incomes have shrunk in cash terms, as well as the total amount they have lost out on in the whole decade since the crash. The tool will then give them a personalised graphic to share how much they have lost on social media, as well as an invitation to send an email to the Chancellor, demanding justice for the impact of the financial crisis.

Fran Boait, executive director of Positive Money, said: “After wrecking the economy and being bailed out with public funds, bankers have awarded themselves record-breaking bonuses in the decade since the crash. Meanwhile the average household has paid a huge price over the past ten years as a result of a crisis they did not cause and the austerity measures that followed. People can’t cope with another decade of this. This is why we’re making the tenth anniversary of the financial crisis an opportunity to turn things around before it’s too late.”

David Hillman, director of the Robin Hood Tax campaign, said: “We must never forget that it was the financiers – no–one else – who crashed the economy. It is truly shocking that ordinary households have lost out by more than £20k each, putting many of them into debt, while the bankers bailed out with public money are being rewarded with fat-cat pay packets. Surely it’s time the government righted this injustice by getting them to pay their fair share to ensure our precious public services are protected.”

Dominic Hook, national officer at Unite the union said:  “Thousands of bank staff paid the price of bosses’ mismanagement with their jobs. The regular announcements of branch closures abandoning local high streets, job cuts, and conduct fines all do nothing to boost the reputation of the financial services sector.  Workers in finance continue to face uncertainty over their futures, with pay as low as £17k, increasing automation, offshoring, outsourcing, a massive gender pay gap, and job segregation.”

Last month, 10 Years On coalition members Positive Money published polling showing the extent to which the British public distrusts banks a decade after their behaviour caused the global financial crisis, as part of the 10 Years On campaign.

ENDS

Notes to editors

1. The analysis is based on the Department for Work and Pensions’ Households Below Average Income the and Office for National Statistics’ Effects of Taxes and Benefits on Household Income datasets. All figures have been adjusted for inflation. The full methodology can be viewed at http://positivemoney.org/whatamiowed-org-research-methodology/

2. While not a strictly causal analysis, the figures give an indication of the profound effect the financial crash and subsequent developments in economic policy have had on households’ living standards. Since disposable income includes savings and the effects of taxes and benefits, the impact of austerity measures and extraordinary monetary policy will also have been felt in these figures.

3. For photos, to arrange a briefing with a spokesperson or for any other questions regarding the campaign please contact simon.youel@positivemoney.org.uk

4. The tool will be live at https://www.whatamiowed.org/ from 00:01 BST on Thursday 13 September

5. A promotional video, produced by advertising agency Don’t Panic, will also accompany the launch of the tool

About 10 Years On

10 Years On is a civil society initiative to mark a decade since the global financial crisis demanding a sustainable financial system where the banking sector first and foremost serves the best interests of people and the planet, working with a network of organisations across Europe to Change Finance. Supporting UK organisations include Positive Money, the Robin Hood Tax campaign, Unite the Union, Christian Aid, War on Want, Christians on the Left, Global Justice Now and Rethinking Economics.