Headline evidence · Economy · Productivity · United Kingdom · output per hour worked, 1997–2025

Britain produces 32% more per hour worked than in 1997. So why doesn’t life feel 32% better?

Most of the rise came before 2008: about 2.1% a year from 1997 to 2007, then about 0.4% a year. On average, real pay and household income have risen roughly in line with productivity since 2000, but renters and first-time buyers have felt far less of it because housing costs rose faster. ONS is changing how it counts hours; its new, not yet official estimate puts the rise to 2024 at 40.7%.

Proposed outcome: Help households afford more by improving what Britain produces and lowering essential costs. What could change →

Geography: United Kingdom
Evidence period: 1997–2025
Evidence status: Published statistics
Editorial review: Reviewed 2 November 2026

The short version

+32%
output per hour worked, 1997 to 2025
UK · ONS LZVB · official
2.1% → 0.4%
average growth a year, 1997–2007 against 2007 onwards
UK · ONS LZVB · to 2025
fourth of 7
in the G7 for GDP per hour worked in 2025 ($86 an hour)
OECD · purchasing power parities · fifth in 1995
10 of 12
nations and regions below the UK average in 2023
ONS regional productivity · UK = 100

Chapter 1

What does Britain produce for each hour we work?

Check out my buns: what productivity means · 1:33 · captioned

Transcript Captions (SRT)Sources and checks Film page

A made-up example, not official figures

Dan’s bakery. Same people, same hours.

Dan employs 5 bakers. Together they work 40 hours a day. Then Dan buys a better mixer and trains the team. Switch between the two days and watch what changes.

Before · the old mixer and layout

Hours worked: 40
Buns made: 500
Buns per hour: 12.5

After · a better mixer, a better layout and training

Hours worked: 40
Buns made: 750
Buns per hour: 18.75

After the change, the bakery makes 50% more for every hour worked. That is output per hour, the measure in the rest of this page. For the whole country, the official figure counts the value of what is produced (after the cost of materials), not buns, across every business and public service.

If the bakery makes more, do Dan’s bakers automatically get paid more?

Not automatically. Dan has to sell the extra buns first, and wages, energy, ingredients, rent and the mixer itself all cost money. What is left can go to higher pay, to profit, to new equipment or to lower prices. Higher productivity makes higher pay possible; it does not decide who gets it. Chapter 5 looks at what actually happened.

Takeaway: Productivity is the value produced for each hour worked. It makes higher pay possible but does not decide who gets it.

The evidence

Watch first: 30 years of UK productivity in under three minutes

Britain produces more. Why don’t we feel richer? · 2:52 · captioned

The film ends with ONS’s new, not yet official estimate: output per hour up 40.7% from 1997 to 2024. The headline above uses the current official series: up 32% from 1997 to 2025. Different methods and end years; both are ONS figures. The film’s business-costs figure is ONS unit labour costs: 52.2 in 1997 Q1 and 103.1 in 2024 Q1 (2023 = 100), up 98% in cash terms, not adjusted for inflation.

Transcript Captions (SRT)Sources and checks Film page

Chapter 2

Has Britain become more productive?

The level kept rising, apart from short falls in recessions, while the speed of improvement dropped. Choose a period, or switch to growth each year, to see both.

FromTo

Show

LevelGrowth each year

Mark events

1997 to 2025: output per hour rose 31.9%, about 1.0% a year.

Output per hour worked, UK, index 1997 = 100

2025: Output per hour 132

Data table: 1997–2025

Output per hour worked, UK, 1997 to 2025
Year	Index (1997 = 100)	% change on year before
1997	100.0	+2.4
1998	102.5	+2.5
1999	104.7	+2.1
2000	109.2	+4.3
2001	110.7	+1.4
2002	112.7	+1.7
2003	115.7	+2.7
2004	117.0	+1.2
2005	119.1	+1.7
2006	121.1	+1.7
2007	123.4	+2.0
2008	123.0	−0.3
2009	121.0	−1.7
2010	123.2	+1.9
2011	123.9	+0.5
2012	123.5	−0.3
2013	123.1	−0.3
2014	123.6	+0.4
2015	124.1	+0.4
2016	125.3	+1.0
2017	127.8	+2.0
2018	128.7	+0.7
2019	128.5	−0.2
2020	130.3	+1.5
2021	132.2	+1.4
2022	133.3	+0.9
2023	132.8	−0.4
2024	131.8	−0.8
2025	131.9	+0.1

“—” means no published value, not zero.

Source: ONS, output per hour worked, UK whole economy (series LZVB, current method), calendar-year averages of four quarters. Events are markers, not explanations: the chart does not show that any one event caused a change.

Takeaway: Yes: about 32% more per hour than in 1997. But most of the gain came before 2008, and growth since has been much slower.

Chapter 3

How does Britain compare with other major economies?

Two questions with different answers: how much each country produces an hour, and how fast that has grown. On the OECD’s measure the UK produced $86 an hour in 2025, against a median of $88 for the other six. Since 1997, the United States, Japan and Canada grew faster than the UK. The timing matters: UK growth fell from 2.1% a year in 1997–2007 to 0.3% a year in 2007–2025, the largest fall in the G7; only Italy grew more slowly after 2007.

Compare

Output per hour in one yearGrowth since a chosen year

YearOrder Include the UK in the G7 median

Countries

In 2025 the UK produced $86 of GDP per hour worked, fourth highest of the seven. The G7 median excluding the UK was $88.

United States$104.7
Germany$102.7
France$96.0
United Kingdom$85.6
Italy$80.4
Canada$76.8
Japan$61.8

Dashed line: G7 median excluding the UK. US dollars at current prices and purchasing power parities: compare countries within a year, not one year with another.

Data table: G7, 1995–2025

GDP per hour worked, G7, 1995 to 2025
Country	Year	US$ per hour (current PPP)	Real, national currency per hour (2020 prices)	OECD status
United Kingdom	1995	29.3	35.01	Normal
United Kingdom	1996	31.0	35.59	Normal
United Kingdom	1997	32.2	36.67	Normal
United Kingdom	1998	32.8	37.59	Normal
United Kingdom	1999	33.8	38.39	Normal
United Kingdom	2000	36.6	40.03	Normal
United Kingdom	2001	38.3	40.53	Normal
United Kingdom	2002	40.2	41.39	Normal
United Kingdom	2003	41.9	42.55	Normal
United Kingdom	2004	44.1	43.07	Normal
United Kingdom	2005	44.5	43.50	Normal
United Kingdom	2006	47.4	44.23	Normal
United Kingdom	2007	48.3	45.02	Normal
United Kingdom	2008	50.5	45.10	Normal
United Kingdom	2009	49.7	43.97	Normal
United Kingdom	2010	52.2	45.13	Normal
United Kingdom	2011	53.1	45.04	Normal
United Kingdom	2012	54.0	44.77	Normal
United Kingdom	2013	55.9	44.94	Normal
United Kingdom	2014	56.6	45.03	Normal
United Kingdom	2015	58.4	45.72	Normal
United Kingdom	2016	59.5	45.57	Normal
United Kingdom	2017	62.2	46.66	Normal
United Kingdom	2018	63.4	46.81	Normal
United Kingdom	2019	66.5	46.68	Normal
United Kingdom	2020	73.2	47.84	Normal
United Kingdom	2021	71.2	47.29	Normal
United Kingdom	2022	80.8	48.04	Normal
United Kingdom	2023	81.9	47.83	Normal
United Kingdom	2024	84.2	47.54	Normal
United Kingdom	2025	85.6	47.54	Normal
United States	1995	32.3	50.80	Normal
United States	1996	33.5	51.80	Normal
United States	1997	34.6	52.63	Normal
United States	1998	35.9	53.90	Normal
United States	1999	37.4	55.41	Normal
United States	2000	39.2	56.85	Normal
United States	2001	41.1	58.22	Normal
United States	2002	43.0	60.00	Normal
United States	2003	45.3	62.00	Normal
United States	2004	47.7	63.54	Normal
United States	2005	50.2	64.82	Normal
United States	2006	52.3	65.49	Normal
United States	2007	54.2	66.14	Normal
United States	2008	56.0	67.06	Normal
United States	2009	58.4	69.50	Normal
United States	2010	60.6	71.19	Normal
United States	2011	61.7	71.11	Normal
United States	2012	63.2	71.47	Normal
United States	2013	64.6	71.80	Normal
United States	2014	66.2	72.35	Normal
United States	2015	67.6	73.20	Normal
United States	2016	68.7	73.69	Normal
United States	2017	70.7	74.47	Normal
United States	2018	73.1	75.28	Normal
United States	2019	75.6	76.57	Normal
United States	2020	80.1	80.06	Normal
United States	2021	85.2	81.52	Normal
United States	2022	90.8	81.10	Normal
United States	2023	95.6	82.27	Normal
United States	2024	100.1	84.12	Normal
United States	2025	104.7	85.60	Normal
Germany	1995	33.2	44.01	Normal
Germany	1996	34.3	44.84	Normal
Germany	1997	35.3	45.98	Normal
Germany	1998	36.1	46.48	Normal
Germany	1999	37.3	47.12	Normal
Germany	2000	38.6	48.27	Normal
Germany	2001	40.6	49.44	Normal
Germany	2002	42.4	49.87	Normal
Germany	2003	44.2	50.33	Normal
Germany	2004	46.1	50.77	Normal
Germany	2005	47.3	51.67	Normal
Germany	2006	49.8	52.53	Normal
Germany	2007	51.9	53.09	Normal
Germany	2008	53.4	53.07	Normal
Germany	2009	53.5	51.49	Normal
Germany	2010	55.4	52.67	Normal
Germany	2011	58.7	53.96	Normal
Germany	2012	60.1	54.38	Normal
Germany	2013	62.6	54.59	Normal
Germany	2014	64.8	55.12	Normal
Germany	2015	65.6	55.48	Normal
Germany	2016	69.6	56.23	Normal
Germany	2017	72.8	57.33	Normal
Germany	2018	75.4	57.53	Normal
Germany	2019	79.3	57.92	Normal
Germany	2020	82.7	58.42	Normal
Germany	2021	86.3	59.36	Normal
Germany	2022	94.2	59.36	Normal
Germany	2023	97.7	58.74	Normal
Germany	2024	99.9	58.25	Normal
Germany	2025	102.7	58.86	Normal
France	1995	32.9	44.77	Normal
France	1996	33.8	45.25	Normal
France	1997	35.1	46.07	Normal
France	1998	36.5	47.11	Normal
France	1999	37.4	47.70	Normal
France	2000	39.9	49.05	Normal
France	2001	42.2	49.90	Normal
France	2002	44.9	51.31	Normal
France	2003	44.5	51.66	Normal
France	2004	45.5	52.24	Normal
France	2005	47.9	52.82	Normal
France	2006	51.4	54.21	Normal
France	2007	52.7	54.01	Normal
France	2008	54.1	53.71	Normal
France	2009	54.8	53.19	Normal
France	2010	56.7	53.93	Normal
France	2011	58.8	54.62	Normal
France	2012	59.4	54.73	Normal
France	2013	63.2	55.61	Normal
France	2014	64.6	56.19	Normal
France	2015	65.7	56.64	Normal
France	2016	68.5	56.62	Normal
France	2017	71.1	57.73	Normal
France	2018	73.4	57.81	Normal
France	2019	79.9	58.09	Normal
France	2020	84.0	58.19	Normal
France	2021	82.5	57.40	Normal
France	2022	86.3	56.51	Normal
France	2023	91.6	56.73	Normal
France	2024	93.1	56.74	Normal
France	2025	96.1	57.59	Normal
Italy	1995	32.1	40.13	Normal
Italy	1996	32.7	40.23	Normal
Italy	1997	33.9	41.00	Normal
Italy	1998	34.9	40.99	Normal
Italy	1999	35.4	41.26	Normal
Italy	2000	37.1	42.47	Normal
Italy	2001	37.9	42.73	Normal
Italy	2002	38.6	42.49	Normal
Italy	2003	39.1	42.22	Normal
Italy	2004	39.7	42.63	Normal
Italy	2005	40.5	42.82	Normal
Italy	2006	42.9	42.72	Normal
Italy	2007	44.7	42.68	Normal
Italy	2008	47.0	42.40	Normal
Italy	2009	47.7	41.61	Normal
Italy	2010	48.8	42.47	Normal
Italy	2011	51.0	42.77	Normal
Italy	2012	52.2	42.47	Normal
Italy	2013	54.0	42.81	Normal
Italy	2014	54.3	42.85	Normal
Italy	2015	54.9	42.89	Normal
Italy	2016	58.3	42.70	Normal
Italy	2017	60.0	42.92	Normal
Italy	2018	61.3	42.85	Normal
Italy	2019	65.4	43.02	Normal
Italy	2020	70.3	44.43	Normal
Italy	2021	71.1	43.90	Normal
Italy	2022	78.2	44.13	Normal
Italy	2023	79.9	43.19	Normal
Italy	2024	80.7	42.60	Normal
Italy	2025	80.4	42.35	Normal
Japan	1995	24.0	3,750.74	Normal
Japan	1996	25.2	3,845.91	Normal
Japan	1997	26.1	3,926.52	Normal
Japan	1998	26.5	3,950.31	Normal
Japan	1999	27.6	4,060.61	Normal
Japan	2000	29.4	4,186.76	Normal
Japan	2001	30.5	4,242.04	Normal
Japan	2002	31.9	4,322.07	Normal
Japan	2003	32.7	4,376.98	Normal
Japan	2004	34.3	4,478.95	Normal
Japan	2005	35.6	4,545.84	Normal
Japan	2006	36.9	4,561.00	Normal
Japan	2007	38.1	4,605.85	Normal
Japan	2008	38.8	4,595.15	Normal
Japan	2009	38.5	4,518.18	Normal
Japan	2010	40.2	4,659.59	Normal
Japan	2011	41.3	4,678.41	Normal
Japan	2012	42.8	4,742.38	Normal
Japan	2013	45.0	4,847.99	Normal
Japan	2014	45.3	4,886.11	Normal
Japan	2015	47.1	4,996.35	Normal
Japan	2016	46.5	5,004.85	Normal
Japan	2017	47.2	5,055.22	Normal
Japan	2018	47.9	5,092.02	Normal
Japan	2019	49.2	5,142.47	Normal
Japan	2020	50.6	5,092.02	Normal
Japan	2021	52.7	5,227.95	Normal
Japan	2022	56.0	5,282.08	Normal
Japan	2023	59.2	5,280.10	Normal
Japan	2024	59.9	5,213.78	Normal
Japan	2025	61.8	5,341.62	Normal
Canada	1995	28.4	54.42	Normal
Canada	1996	28.9	54.34	Normal
Canada	1997	29.9	55.20	Normal
Canada	1998	30.8	56.24	Normal
Canada	1999	32.0	57.67	Normal
Canada	2000	33.4	59.50	Normal
Canada	2001	34.8	60.50	Normal
Canada	2002	35.5	61.47	Normal
Canada	2003	36.8	61.60	Normal
Canada	2004	38.1	62.12	Normal
Canada	2005	40.8	63.50	Normal
Canada	2006	42.7	64.30	Normal
Canada	2007	43.9	64.32	Normal
Canada	2008	44.7	64.17	Normal
Canada	2009	45.0	64.39	Normal
Canada	2010	45.8	64.77	Normal
Canada	2011	47.4	65.89	Normal
Canada	2012	47.7	65.83	Normal
Canada	2013	50.1	66.74	Normal
Canada	2014	52.2	68.63	Normal
Canada	2015	50.9	68.43	Normal
Canada	2016	53.3	68.80	Normal
Canada	2017	55.2	69.78	Normal
Canada	2018	56.5	69.97	Normal
Canada	2019	57.0	70.19	Normal
Canada	2020	62.9	75.60	Normal
Canada	2021	67.2	72.55	Normal
Canada	2022	73.5	72.40	Normal
Canada	2023	73.9	71.37	Normal
Canada	2024	75.3	71.38	Normal
Canada	2025	76.8	72.08	Normal

“—” means no published value, not zero.

Source: OECD Productivity Database, GDP per hour worked, total economy, 1995–2025. Every country uses the same OECD method, so the UK figure differs slightly from ONS’s own series in Chapter 2. ONS’s new component approach is not used here. Older ONS comparisons ending in 2021 are on the G7 page.

Takeaway: In 2025 the UK was fourth of the seven on output per hour. It grew fast before 2007, then had the biggest slowdown in the G7.

Chapter 4

Does where you work affect productivity?

In 2023, 10 of the 12 nations and English regions produced less per hour than the UK average. The gap between the highest and lowest was 43.7 index points, against 52.0 in 1998. Areas with more high-value industries, more investment and better connections tend to score higher; a lower figure is not a measure of effort.

Show

Compared with UK averageChange against the UK

Year: 2023Find an area

Below 85
85 to 95
95 to 105
105 to 115
115 and above

Source: Office for National Statistics licensed under the Open Government Licence v.3.0. Contains OS data © Crown copyright and database right 2025

Select up to three areas on the map, in the list or by name to compare them. With none selected, the figures below are for every area.

Data table: twelve nations and regions, 1998–2023

Output per hour worked relative to the UK (UK = 100), ITL1 nations and regions, 1998 to 2023
Area	GSS code	ITL1 code	Nation or English region	Year	Index (UK = 100)
North East	E12000001	TLC	English region	1998	88.4
North East	E12000001	TLC	English region	1999	88.3
North East	E12000001	TLC	English region	2000	87.5
North East	E12000001	TLC	English region	2001	90.2
North East	E12000001	TLC	English region	2002	89.6
North East	E12000001	TLC	English region	2003	87.8
North East	E12000001	TLC	English region	2004	89.2
North East	E12000001	TLC	English region	2005	89.6
North East	E12000001	TLC	English region	2006	88.0
North East	E12000001	TLC	English region	2007	86.8
North East	E12000001	TLC	English region	2008	85.8
North East	E12000001	TLC	English region	2009	86.3
North East	E12000001	TLC	English region	2010	86.4
North East	E12000001	TLC	English region	2011	88.6
North East	E12000001	TLC	English region	2012	89.4
North East	E12000001	TLC	English region	2013	87.5
North East	E12000001	TLC	English region	2014	87.1
North East	E12000001	TLC	English region	2015	87.3
North East	E12000001	TLC	English region	2016	88.1
North East	E12000001	TLC	English region	2017	86.4
North East	E12000001	TLC	English region	2018	84.4
North East	E12000001	TLC	English region	2019	86.9
North East	E12000001	TLC	English region	2020	85.6
North East	E12000001	TLC	English region	2021	83.8
North East	E12000001	TLC	English region	2022	86.5
North East	E12000001	TLC	English region	2023	85.4
North West	E12000002	TLD	English region	1998	92.4
North West	E12000002	TLD	English region	1999	92.7
North West	E12000002	TLD	English region	2000	91.1
North West	E12000002	TLD	English region	2001	93.1
North West	E12000002	TLD	English region	2002	92.3
North West	E12000002	TLD	English region	2003	92.4
North West	E12000002	TLD	English region	2004	92.5
North West	E12000002	TLD	English region	2005	93.3
North West	E12000002	TLD	English region	2006	94.0
North West	E12000002	TLD	English region	2007	93.3
North West	E12000002	TLD	English region	2008	92.5
North West	E12000002	TLD	English region	2009	93.0
North West	E12000002	TLD	English region	2010	91.6
North West	E12000002	TLD	English region	2011	92.0
North West	E12000002	TLD	English region	2012	92.0
North West	E12000002	TLD	English region	2013	92.0
North West	E12000002	TLD	English region	2014	89.7
North West	E12000002	TLD	English region	2015	90.8
North West	E12000002	TLD	English region	2016	91.6
North West	E12000002	TLD	English region	2017	91.7
North West	E12000002	TLD	English region	2018	90.3
North West	E12000002	TLD	English region	2019	88.6
North West	E12000002	TLD	English region	2020	92.4
North West	E12000002	TLD	English region	2021	92.0
North West	E12000002	TLD	English region	2022	93.7
North West	E12000002	TLD	English region	2023	94.8
Yorkshire and The Humber	E12000003	TLE	English region	1998	88.3
Yorkshire and The Humber	E12000003	TLE	English region	1999	89.2
Yorkshire and The Humber	E12000003	TLE	English region	2000	88.4
Yorkshire and The Humber	E12000003	TLE	English region	2001	89.6
Yorkshire and The Humber	E12000003	TLE	English region	2002	88.9
Yorkshire and The Humber	E12000003	TLE	English region	2003	89.7
Yorkshire and The Humber	E12000003	TLE	English region	2004	88.7
Yorkshire and The Humber	E12000003	TLE	English region	2005	88.6
Yorkshire and The Humber	E12000003	TLE	English region	2006	89.2
Yorkshire and The Humber	E12000003	TLE	English region	2007	90.4
Yorkshire and The Humber	E12000003	TLE	English region	2008	90.1
Yorkshire and The Humber	E12000003	TLE	English region	2009	88.1
Yorkshire and The Humber	E12000003	TLE	English region	2010	86.6
Yorkshire and The Humber	E12000003	TLE	English region	2011	85.8
Yorkshire and The Humber	E12000003	TLE	English region	2012	86.1
Yorkshire and The Humber	E12000003	TLE	English region	2013	86.0
Yorkshire and The Humber	E12000003	TLE	English region	2014	84.9
Yorkshire and The Humber	E12000003	TLE	English region	2015	85.8
Yorkshire and The Humber	E12000003	TLE	English region	2016	84.8
Yorkshire and The Humber	E12000003	TLE	English region	2017	85.7
Yorkshire and The Humber	E12000003	TLE	English region	2018	83.5
Yorkshire and The Humber	E12000003	TLE	English region	2019	85.1
Yorkshire and The Humber	E12000003	TLE	English region	2020	85.3
Yorkshire and The Humber	E12000003	TLE	English region	2021	87.3
Yorkshire and The Humber	E12000003	TLE	English region	2022	88.3
Yorkshire and The Humber	E12000003	TLE	English region	2023	87.9
East Midlands	E12000004	TLF	English region	1998	88.7
East Midlands	E12000004	TLF	English region	1999	87.1
East Midlands	E12000004	TLF	English region	2000	87.2
East Midlands	E12000004	TLF	English region	2001	87.9
East Midlands	E12000004	TLF	English region	2002	89.2
East Midlands	E12000004	TLF	English region	2003	87.7
East Midlands	E12000004	TLF	English region	2004	88.1
East Midlands	E12000004	TLF	English region	2005	85.2
East Midlands	E12000004	TLF	English region	2006	86.3
East Midlands	E12000004	TLF	English region	2007	84.5
East Midlands	E12000004	TLF	English region	2008	86.8
East Midlands	E12000004	TLF	English region	2009	86.1
East Midlands	E12000004	TLF	English region	2010	85.3
East Midlands	E12000004	TLF	English region	2011	84.8
East Midlands	E12000004	TLF	English region	2012	86.0
East Midlands	E12000004	TLF	English region	2013	87.0
East Midlands	E12000004	TLF	English region	2014	87.5
East Midlands	E12000004	TLF	English region	2015	84.6
East Midlands	E12000004	TLF	English region	2016	84.5
East Midlands	E12000004	TLF	English region	2017	83.8
East Midlands	E12000004	TLF	English region	2018	86.5
East Midlands	E12000004	TLF	English region	2019	85.7
East Midlands	E12000004	TLF	English region	2020	87.5
East Midlands	E12000004	TLF	English region	2021	87.3
East Midlands	E12000004	TLF	English region	2022	83.8
East Midlands	E12000004	TLF	English region	2023	85.3
West Midlands	E12000005	TLG	English region	1998	88.4
West Midlands	E12000005	TLG	English region	1999	90.4
West Midlands	E12000005	TLG	English region	2000	89.6
West Midlands	E12000005	TLG	English region	2001	89.6
West Midlands	E12000005	TLG	English region	2002	89.1
West Midlands	E12000005	TLG	English region	2003	88.2
West Midlands	E12000005	TLG	English region	2004	88.2
West Midlands	E12000005	TLG	English region	2005	87.9
West Midlands	E12000005	TLG	English region	2006	85.9
West Midlands	E12000005	TLG	English region	2007	84.9
West Midlands	E12000005	TLG	English region	2008	86.0
West Midlands	E12000005	TLG	English region	2009	84.9
West Midlands	E12000005	TLG	English region	2010	85.5
West Midlands	E12000005	TLG	English region	2011	87.6
West Midlands	E12000005	TLG	English region	2012	86.3
West Midlands	E12000005	TLG	English region	2013	86.7
West Midlands	E12000005	TLG	English region	2014	87.4
West Midlands	E12000005	TLG	English region	2015	85.6
West Midlands	E12000005	TLG	English region	2016	87.5
West Midlands	E12000005	TLG	English region	2017	88.2
West Midlands	E12000005	TLG	English region	2018	88.4
West Midlands	E12000005	TLG	English region	2019	87.5
West Midlands	E12000005	TLG	English region	2020	86.7
West Midlands	E12000005	TLG	English region	2021	87.2
West Midlands	E12000005	TLG	English region	2022	86.4
West Midlands	E12000005	TLG	English region	2023	85.2
East of England	E12000006	TLH	English region	1998	99.0
East of England	E12000006	TLH	English region	1999	100.4
East of England	E12000006	TLH	English region	2000	99.1
East of England	E12000006	TLH	English region	2001	99.1
East of England	E12000006	TLH	English region	2002	99.8
East of England	E12000006	TLH	English region	2003	100.2
East of England	E12000006	TLH	English region	2004	98.4
East of England	E12000006	TLH	English region	2005	98.8
East of England	E12000006	TLH	English region	2006	97.7
East of England	E12000006	TLH	English region	2007	97.4
East of England	E12000006	TLH	English region	2008	97.1
East of England	E12000006	TLH	English region	2009	96.6
East of England	E12000006	TLH	English region	2010	95.4
East of England	E12000006	TLH	English region	2011	94.0
East of England	E12000006	TLH	English region	2012	93.1
East of England	E12000006	TLH	English region	2013	93.3
East of England	E12000006	TLH	English region	2014	94.4
East of England	E12000006	TLH	English region	2015	93.9
East of England	E12000006	TLH	English region	2016	93.5
East of England	E12000006	TLH	English region	2017	94.6
East of England	E12000006	TLH	English region	2018	93.5
East of England	E12000006	TLH	English region	2019	93.9
East of England	E12000006	TLH	English region	2020	93.5
East of England	E12000006	TLH	English region	2021	95.1
East of England	E12000006	TLH	English region	2022	94.7
East of England	E12000006	TLH	English region	2023	94.7
London	E12000007	TLI	English region	1998	132.7
London	E12000007	TLI	English region	1999	129.1
London	E12000007	TLI	English region	2000	130.2
London	E12000007	TLI	English region	2001	128.0
London	E12000007	TLI	English region	2002	130.5
London	E12000007	TLI	English region	2003	130.1
London	E12000007	TLI	English region	2004	132.3
London	E12000007	TLI	English region	2005	134.0
London	E12000007	TLI	English region	2006	136.1
London	E12000007	TLI	English region	2007	138.7
London	E12000007	TLI	English region	2008	135.3
London	E12000007	TLI	English region	2009	134.8
London	E12000007	TLI	English region	2010	137.0
London	E12000007	TLI	English region	2011	136.4
London	E12000007	TLI	English region	2012	134.2
London	E12000007	TLI	English region	2013	133.9
London	E12000007	TLI	English region	2014	134.9
London	E12000007	TLI	English region	2015	135.4
London	E12000007	TLI	English region	2016	136.0
London	E12000007	TLI	English region	2017	133.5
London	E12000007	TLI	English region	2018	133.5
London	E12000007	TLI	English region	2019	133.4
London	E12000007	TLI	English region	2020	128.5
London	E12000007	TLI	English region	2021	128.5
London	E12000007	TLI	English region	2022	129.4
London	E12000007	TLI	English region	2023	128.5
South East	E12000008	TLJ	English region	1998	110.8
South East	E12000008	TLJ	English region	1999	110.2
South East	E12000008	TLJ	English region	2000	109.9
South East	E12000008	TLJ	English region	2001	109.7
South East	E12000008	TLJ	English region	2002	109.0
South East	E12000008	TLJ	English region	2003	110.2
South East	E12000008	TLJ	English region	2004	108.9
South East	E12000008	TLJ	English region	2005	109.1
South East	E12000008	TLJ	English region	2006	108.9
South East	E12000008	TLJ	English region	2007	107.6
South East	E12000008	TLJ	English region	2008	108.8
South East	E12000008	TLJ	English region	2009	109.7
South East	E12000008	TLJ	English region	2010	109.7
South East	E12000008	TLJ	English region	2011	108.8
South East	E12000008	TLJ	English region	2012	107.4
South East	E12000008	TLJ	English region	2013	108.3
South East	E12000008	TLJ	English region	2014	107.4
South East	E12000008	TLJ	English region	2015	108.6
South East	E12000008	TLJ	English region	2016	105.0
South East	E12000008	TLJ	English region	2017	107.3
South East	E12000008	TLJ	English region	2018	109.9
South East	E12000008	TLJ	English region	2019	108.7
South East	E12000008	TLJ	English region	2020	113.8
South East	E12000008	TLJ	English region	2021	110.1
South East	E12000008	TLJ	English region	2022	107.4
South East	E12000008	TLJ	English region	2023	107.7
South West	E12000009	TLK	English region	1998	92.3
South West	E12000009	TLK	English region	1999	94.1
South West	E12000009	TLK	English region	2000	95.3
South West	E12000009	TLK	English region	2001	95.4
South West	E12000009	TLK	English region	2002	94.8
South West	E12000009	TLK	English region	2003	94.5
South West	E12000009	TLK	English region	2004	93.4
South West	E12000009	TLK	English region	2005	92.8
South West	E12000009	TLK	English region	2006	91.5
South West	E12000009	TLK	English region	2007	91.3
South West	E12000009	TLK	English region	2008	92.4
South West	E12000009	TLK	English region	2009	91.4
South West	E12000009	TLK	English region	2010	91.8
South West	E12000009	TLK	English region	2011	90.3
South West	E12000009	TLK	English region	2012	91.8
South West	E12000009	TLK	English region	2013	90.2
South West	E12000009	TLK	English region	2014	90.8
South West	E12000009	TLK	English region	2015	90.4
South West	E12000009	TLK	English region	2016	91.3
South West	E12000009	TLK	English region	2017	91.8
South West	E12000009	TLK	English region	2018	90.8
South West	E12000009	TLK	English region	2019	91.0
South West	E12000009	TLK	English region	2020	90.6
South West	E12000009	TLK	English region	2021	93.7
South West	E12000009	TLK	English region	2022	92.1
South West	E12000009	TLK	English region	2023	92.5
Wales	W92000004	TLL	Nation	1998	87.0
Wales	W92000004	TLL	Nation	1999	86.7
Wales	W92000004	TLL	Nation	2000	87.1
Wales	W92000004	TLL	Nation	2001	85.6
Wales	W92000004	TLL	Nation	2002	84.5
Wales	W92000004	TLL	Nation	2003	84.9
Wales	W92000004	TLL	Nation	2004	84.7
Wales	W92000004	TLL	Nation	2005	82.8
Wales	W92000004	TLL	Nation	2006	82.3
Wales	W92000004	TLL	Nation	2007	82.4
Wales	W92000004	TLL	Nation	2008	82.1
Wales	W92000004	TLL	Nation	2009	81.9
Wales	W92000004	TLL	Nation	2010	82.4
Wales	W92000004	TLL	Nation	2011	83.4
Wales	W92000004	TLL	Nation	2012	85.2
Wales	W92000004	TLL	Nation	2013	84.9
Wales	W92000004	TLL	Nation	2014	83.2
Wales	W92000004	TLL	Nation	2015	82.4
Wales	W92000004	TLL	Nation	2016	83.5
Wales	W92000004	TLL	Nation	2017	83.7
Wales	W92000004	TLL	Nation	2018	82.8
Wales	W92000004	TLL	Nation	2019	86.0
Wales	W92000004	TLL	Nation	2020	84.4
Wales	W92000004	TLL	Nation	2021	82.5
Wales	W92000004	TLL	Nation	2022	83.6
Wales	W92000004	TLL	Nation	2023	84.9
Scotland	S92000003	TLM	Nation	1998	91.9
Scotland	S92000003	TLM	Nation	1999	91.7
Scotland	S92000003	TLM	Nation	2000	91.3
Scotland	S92000003	TLM	Nation	2001	90.1
Scotland	S92000003	TLM	Nation	2002	90.7
Scotland	S92000003	TLM	Nation	2003	91.4
Scotland	S92000003	TLM	Nation	2004	93.9
Scotland	S92000003	TLM	Nation	2005	93.1
Scotland	S92000003	TLM	Nation	2006	93.0
Scotland	S92000003	TLM	Nation	2007	92.2
Scotland	S92000003	TLM	Nation	2008	92.9
Scotland	S92000003	TLM	Nation	2009	96.6
Scotland	S92000003	TLM	Nation	2010	97.0
Scotland	S92000003	TLM	Nation	2011	96.8
Scotland	S92000003	TLM	Nation	2012	98.2
Scotland	S92000003	TLM	Nation	2013	98.5
Scotland	S92000003	TLM	Nation	2014	99.2
Scotland	S92000003	TLM	Nation	2015	99.0
Scotland	S92000003	TLM	Nation	2016	97.5
Scotland	S92000003	TLM	Nation	2017	97.2
Scotland	S92000003	TLM	Nation	2018	98.1
Scotland	S92000003	TLM	Nation	2019	99.3
Scotland	S92000003	TLM	Nation	2020	97.9
Scotland	S92000003	TLM	Nation	2021	96.6
Scotland	S92000003	TLM	Nation	2022	99.1
Scotland	S92000003	TLM	Nation	2023	98.9
Northern Ireland	N92000002	TLN	Nation	1998	80.6
Northern Ireland	N92000002	TLN	Nation	1999	79.6
Northern Ireland	N92000002	TLN	Nation	2000	83.2
Northern Ireland	N92000002	TLN	Nation	2001	84.4
Northern Ireland	N92000002	TLN	Nation	2002	82.0
Northern Ireland	N92000002	TLN	Nation	2003	81.9
Northern Ireland	N92000002	TLN	Nation	2004	81.2
Northern Ireland	N92000002	TLN	Nation	2005	80.6
Northern Ireland	N92000002	TLN	Nation	2006	81.4
Northern Ireland	N92000002	TLN	Nation	2007	81.1
Northern Ireland	N92000002	TLN	Nation	2008	79.8
Northern Ireland	N92000002	TLN	Nation	2009	80.4
Northern Ireland	N92000002	TLN	Nation	2010	78.7
Northern Ireland	N92000002	TLN	Nation	2011	80.9
Northern Ireland	N92000002	TLN	Nation	2012	83.5
Northern Ireland	N92000002	TLN	Nation	2013	81.2
Northern Ireland	N92000002	TLN	Nation	2014	80.5
Northern Ireland	N92000002	TLN	Nation	2015	83.0
Northern Ireland	N92000002	TLN	Nation	2016	84.9
Northern Ireland	N92000002	TLN	Nation	2017	82.6
Northern Ireland	N92000002	TLN	Nation	2018	82.7
Northern Ireland	N92000002	TLN	Nation	2019	82.4
Northern Ireland	N92000002	TLN	Nation	2020	82.6
Northern Ireland	N92000002	TLN	Nation	2021	90.3
Northern Ireland	N92000002	TLN	Nation	2022	87.6
Northern Ireland	N92000002	TLN	Nation	2023	87.6

“—” means no published value, not zero.

Source: ONS, annual regional labour productivity (PRODBYREG Table 2), current prices, UK = 100, published 19 June 2025. Workplace-based, so commuting raises London’s figure. A relative index: an area can grow while its index falls if the UK grows faster. ONS publishes new regional and subregional figures on 5 November 2026; subregional (ITL2 and ITL3) maps will be added once that release is checked. A city-against-rural comparison is not shown: the four nations classify areas differently, so a fair UK-wide version has not been established.

Takeaway: Output per hour differs a lot across the UK. The gaps reflect what each area’s economy does, its investment and its transport, not how hard people work.

Chapter 5

If we produce more, why don’t we necessarily feel richer?

Since 2000, output per hour is up 21%, average weekly pay after inflation 24% and household income per head after tax, benefits and inflation 32% (to 2025). On average, then, pay and income have broadly kept up with productivity. They are different measures, deflated by different price indices, so the lines are compared side by side, not subtracted.

Lines

Output per hourUK, whole economy, ONS LZVBAverage weekly pay after inflationGreat Britain, employees, mean total pay (ONS A3WX, CPIH-deflated)Household income per head after tax, benefits and inflationUK, national accounts (ONS CRXW)

Index, 2000 = 100, after inflation

2025: Output per hour 121 · Real pay 124 · Household income 132

Data table: 2000–2025

Output per hour, real pay and real household income per head, index 2000 = 100
Year	Output per hour (2000 = 100)	Real average weekly pay (2000 = 100)	Real household income per head (2000 = 100)
2000	100.0	100.0	100.0
2001	101.4	103.5	103.1
2002	103.2	105.2	104.8
2003	106.0	107.0	106.6
2004	107.2	110.3	108.8
2005	109.0	112.9	110.8
2006	110.9	115.5	112.0
2007	113.0	118.3	115.8
2008	112.7	118.3	114.4
2009	110.8	115.9	115.4
2010	112.8	115.7	115.5
2011	113.4	114.1	112.4
2012	113.1	112.7	115.0
2013	112.7	111.2	116.6
2014	113.2	110.8	119.2
2015	113.6	113.1	126.0
2016	114.7	114.8	125.8
2017	117.0	114.5	126.6
2018	117.8	115.2	128.8
2019	117.6	117.1	131.1
2020	119.3	118.0	130.7
2021	121.0	121.8	132.2
2022	122.1	119.9	127.2
2023	121.6	120.4	127.1
2024	120.7	122.7	131.0
2025	120.8	123.7	132.1

“—” means no published value, not zero.

What pay actually buys

Averages hide the biggest difference: housing. On typical full-time pay, renting and saving for a first home now leaves 30p of each £1 to live on, against 48p in 1996. Owners who bought long ago have not seen that squeeze.

Cost of living: homes, bills and who is worse off →

What happened to pay · Housing · Energy bills · Inflation

Illustration, not measured shares

Where extra value can go

Pay and pensionswages, employer pension and National Insurance
Profitsreturns to owners and shareholders
Reinvestmentnew equipment, software and research
Prices and taxeslower prices for customers; tax receipts

The boxes are equal on purpose: this shows the possible routes, not how the UK’s income is actually split. Measured shares are not shown here.

Sources: ONS LZVB (output per hour, UK); ONS A3WX (average weekly earnings, total pay, Great Britain, employees, a mean deflated by CPIH); ONS CRXW (real household disposable income per head, UK national accounts, includes imputed rent). Pay is before tax and is not household income. Cost-of-living figures: method.

Takeaway: Productivity sets the room for better living standards. What households feel also depends on prices, taxes, housing costs and how the gains are shared.

Why it is happening

Chapter 6

What would help Britain produce more value per hour?

Several things decide output per hour: how much firms invest, research and new technology, skills and health, how well businesses are run, and whether homes, power and transport let people and firms work where they are most productive. Each card links to its evidence. None comes with a guaranteed figure: only the management trial below is a causal estimate, and it is from India.

Investment
18.7% of GDP
Total investment in 2024: the lowest in the G7 (other six: median 21.8%). Workers with more and better equipment make more per hour.
See the evidence →
Research and ideas
2.8% of GDP
Research and development spending in 2023: fourth of seven in the G7. New methods and technology raise output per hour once firms adopt them.
See the evidence →
Skills and health
2.74 million
people aged 16–64 were out of work through long-term sickness (Aug 2026). A skilled, healthy workforce produces more per hour, and more people in work raises output per head.
See the evidence →
Management and technology
+11% in a trial
In a randomised trial in India, better management raised productivity 11%. The UK’s own schemes have not yet shown an effect, so the gain is unproven here.
See the evidence →
Homes, power and transport
10 of 12 regions below average
Output per hour is lowest in Wales. Where homes, grid connections and transport are hard to build, firms and workers cannot move to where they are most productive.
See the evidence →

Output per hour worked

+6.8% since 2007

which in the long run sets the room for higher pay, tax receipts and public services.

Growing the economy: investment, planning, energy and skills as constraints → · Case studies →

Takeaway: Britain’s productivity challenge is not about how hard we work. It is about what our economy enables that work to achieve, and whether the gains improve people’s lives.

Our analysis

Long-term gains in pay depend partly on businesses producing more with each hour of work. Investment, skills and reliable infrastructure matter; rising prices can wipe out cash pay rises.

Read the options, evidence and limits below.

Who is affected most

Who feels it: income by income fifth

Survey-based evidence

DWP Family Resources Survey / HBAISurvey-based household income estimates; definitions and housing-cost treatment matter.

How do incomes differ after housing costs?

The lowest fifth’s typical income is £273 a week, against £1,238 in the highest fifth

United Kingdom · 2000–01, 2007–08 and 2024–25 (financial years)

2024–25

Highest fifth£1,238
Fourth fifth£816
Middle fifth (overall median)£623
Second fifth£463
Lowest fifth£273

Households near the top have far more to live on than those near the bottom. The comparison allows for household size and subtracts housing costs.

United Kingdom · 2000–01, 2007–08 and 2024–25 (financial years) · Accredited official statistics (survey estimates with sampling error)

Show the workings

Median weekly household income within each fifth of the income distribution, after housing costs, equivalised, £ a week at 2024/25 prices, UK: 2024–25. Earlier snapshots are in the table; administrative linking creates a series break, so the chart does not join old and new methods.

Administrative benefit linking creates a break in this stored vintage at 2021/22: older snapshots cannot be read as measured income growth. The latest comparison shows the distribution of income, not the same people moving between groups. No significance claim is inferred from rounded group medians.

Geography:: United Kingdom — People in private households
Measure:: £ a week, 2024/25 prices, equivalised for household size
Period:: 2000–01, 2007–08 and 2024–25 (financial years)
Status:: Accredited official statistics (survey estimates with sampling error)
Calculation:: Published levels from Table 1.2b; no percentage change calculated across the administrative-linking break.
Compare with:: 2000–01, the same starting point as the pay chart; 2007–08, the year the financial crisis began, in the table
Not included / breaks:: There is a series break in 2021/22, when benefit income began to be linked to administrative records; DWP advises caution comparing across it. Excludes people not in private households.

Source: DWP, Households Below Average Income: financial years ending 1995 to 2025, summary Table 1.2b (quintile medians, 2024/25 prices) (released 26 March 2026).

View the data as a table

Income fifth	2000–01 (£/wk, earlier method)	2007–08 (£/wk, earlier method)	2024–25 (£/wk, admin-linked)
Lowest fifth	£201	£221	£273
Second fifth	£328	£382	£463
Middle fifth (overall median)	£468	£543	£623
Fourth fifth	£642	£739	£816
Highest fifth	£1,005	£1,157	£1,238

Scroll the table sideways to see every column.

For which households are worse off, and why, see Cost of living: who is worse off and Inequality.

What could change

Proposals to consider. The bodies named below would need to agree to deliver them; responsibility is not a recorded commitment. Follow the links for costs and evidence.

Offer evidence-based employment support alongside healthcare
Link employment support with healthcare and test whether it helps people into work.
Who could deliver it: the Department for Work and Pensions, health commissioners and local employment partners.
Main trade-off and delivery needs
Clinical displacement; unsuitable pressure to work; variable fidelity.
Specify cohort and voluntary offer; secure clinical referrals, trained employment specialists, employer links and linked-data evaluation.
Cost: Only part of the cost has been estimated.
Costs, drawbacks and evidence →
Turn investment promises into a deliverable pipeline
Publish which investment projects are funded, when they should finish and what has actually been built.
Who could deliver it: Treasury, infrastructure bodies, departments and devolved governments.
Main trade-off and delivery needs
Double-counting housing/grid benefits; shared workforce bottlenecks.
Distinguish funded projects from aspirations; sequence resources; name owners and independent assurance; protect maintenance.
Cost: Only part of the cost has been estimated.
Costs, drawbacks and evidence →
Turn housing permissions into completed homes
Focus on getting homes built after planning permission is granted.
Who could deliver it: Planning authorities, housing bodies, developers and utilities; devolved responsibility.
Main trade-off and delivery needs
Binding construction/infrastructure constraints; environmental and displacement harms.
Select sites; resolve land, planning, utilities, transport and viability; commission tenure mix and delivery agreements.
Cost: The extra cost is not yet known.
Costs, drawbacks and evidence →
Make childcare places work for working parents
Add childcare places and hours where local shortages stop parents working.
Who could deliver it: councils, education departments and providers in England; separate devolved arrangements.
Main trade-off and delivery needs
The main risks still need to be assessed.
Verify unmet demand, existing awards and provider viability; cost places, workforce, premises, operating subsidy and parental fees. Track access and sustained parental work. Proposed owners: councils, DfE and providers in England; separate devolved arrangements.
Cost: The extra cost is not yet known.
Costs, drawbacks and evidence →

See all options and what is still unknown →

Some problems have no assessed solution yet: see coverage and gaps.

The productivity SWOT and action plan: what could change, how soon, and the case studies behind it →

Domain SWOT

Recorded

Show the findings

Strengths · 2 findings

The UK is the world’s second-largest exporter of services and has a strong university research base — assets the Resolution Foundation and LSE’s Economy 2030 Inquiry says a growth strategy should build on.
United Kingdom · Data to 2023 (report published December 2023)
Planning reforms are in force: the National Planning Policy Framework was revised in December 2024 and replaced by a new version on 17 August 2026, and the Planning and Infrastructure Act 2025 became law on 18 December 2025. What they add in homes or output has not yet been observed.
England · December 2024 to August 2026

Weaknesses · 5 findings

Output per hour worked grew about 2.2% a year from 1990 to 2007 but about 0.4% a year from 2007 to 2025. In 2025 it was 6.8% above 2007 and 0.7% below its 2023 level.
United Kingdom · 1990–2025 (annual averages of four quarters)
Among the G7, UK output per hour grew second slowest from 2007 to 2021, and its growth rate fell further than any other, from 2.0% a year in 1997–2007 to 0.3% a year. In 2021 UK output per hour was fourth of the six members with data, with output per hour 18% higher in France and 25% higher in the United States.
G7 (Japan to 2020) · 1997–2021, published 11 January 2023
Average real weekly pay in 2025 was 4.6% above 2007, 18 years on — after rising 18.3% from 2000 to 2007.
Great Britain · 2000–2025 (annual averages)
Real GDP per head grew about 0.5% a year from 2007 to 2025, against about 2.1% a year from 1990 to 2007.
United Kingdom · 1990–2025
Real household disposable income per head in 2025 was 0.8% higher than in 2019.
United Kingdom · 2019–2025

Opportunities · 3 findings

Living standards could rise faster if investment, homes where the jobs are and support into suitable work move together, rather than relying on one headline growth target.
Depends on: Each is judged on outcomes — occupied homes, sustained jobs, assets in use — and the gains reach lower-income households, not only the average.
our synthesis
Output per hour could rise if proven management and technology practices spread from the best firms to the rest. In a randomised trial in India, free management consulting raised productivity by about 11%; the UK’s own business-support schemes have not yet shown a productivity effect.
Depends on: Support is tested against a comparison group with productivity as the outcome, and scaled only if it works. The trial covered large firms in one industry abroad and does not show that lighter-touch UK schemes will.
our synthesis
The OBR estimated in March 2025 that the December 2024 changes to the National Planning Policy Framework would add about 170,000 homes over five years and raise the economy’s potential output by about 0.2% by 2029–30. The estimate was made before the Planning and Infrastructure Act 2025 and is not an estimate of that Act.
Depends on: Councils apply the revised framework and the permitted homes are built. The OBR calls its own judgement uncertain, and in March 2026 said the effect had “yet to meaningfully materialise in outturn”.
United Kingdom · March 2025 forecast, for 2025–26 to 2029–30 · modelled estimate

Threats · 4 findings

Regulatory reforms need evidence of results: the NAO found regulators taking action, but could not establish a material growth effect because government lacked the data. Growth objectives also require explicit trade-offs with protections for people and the environment.
United Kingdom · NAO review, 21 January 2026 · risk
Growth need not reach lower-income households: the Inquiry describes the UK’s mix of slow growth and high inequality as a “toxic combination” for low- and middle-income families.
risk
Energy and food price shocks pass quickly into household costs: CPI inflation peaked at 11.1% in October 2022, and prices do not fall back when the rate does.
risk
UK exports depend on two markets whose trade rules the UK does not set: the United States took 21.8% of UK exports in 2025 and the EU 41.3%, so a tariff or regulatory change in either reaches a large share of UK sales abroad.
United Kingdom · 2025 · risk

See the whole-UK SWOT →

Domain action plan

Proposed

Possible steps for government and the bodies responsible. These describe the order of work, not promised dates: starting an action and seeing results take different amounts of time.

Short term · prepare
Separate funded investment from promises and identify delivery obstacles.
Medium term · deliver
Build the housing, skills, childcare and infrastructure in the linked options.
Long term · judge results
Judge results by buying power and living standards across households.

Delivery steps and owners (4)

Prerequisite: Publish the blocker, owner and infrastructure cost for priority housing sites · MHCLG with local planning authorities · proposed
Decision: Keep Connect to Work at fidelity and agree NHS referral routes in each area · DWP delivery areas and NHS commissioners · proposed
Delivery: Build and occupy homes on unblocked sites; support participants into sustained work · Developers, housing associations and Connect to Work providers · proposed
Result: Real household income per head rising, including in the lowest fifth after housing costs · ONS and DWP statistics · proposed

Sources, method and changes

Sources and methods (9)

ONS, Output per hour worked, UK whole economy, series LZVB — UK output per hour, headline and Chapter 2
ONS, Component approach to measuring labour productivity, UK: 1997 to 2024, not official statistics (released 17 September 2026) — the coming revision (quoted, not charted)
OECD, Productivity Database: GDP per hour worked (DSD_PDB@DF_PDB, GDPHRS, total economy), Levels: US$ at current prices and current PPPs; growth: national currency, chain-linked volumes (released retrieved 2026-11-02) — G7 comparison, Chapter 3
ONS, Unit labour costs : whole economy SA: Index 2023=100: UK (series LNNL), LNNL, UCST (released 2026-08-18) — unit labour costs quoted in the 30-year film
ONS, Annual regional labour productivity, PRODBYREG Table 2 (output per hour, current prices, UK = 100) (released 19 June 2025) — nations and regions, Chapter 4
International Territorial Level 1 (January 2025) Boundaries UK BUC, ONS Open Geography Portal (released fetched 2026-11-02) — map boundaries, Chapter 4
ONS, Average weekly earnings: real terms, whole economy, total pay, series A3WX (annual averages) (released 15 September 2026) — real pay, Chapter 5
ONS, Real households’ disposable income per head (UK Economic Accounts), series CRXW (released 30 September 2026) — household income per head, Chapter 5
DWP, Households Below Average Income: financial years ending 1995 to 2025, summary Table 1.2b (quintile medians, 2024/25 prices) (released 26 March 2026) — income by income fifth

Method notes

Headline: output per hour (ONS LZVB) averaged over the four quarters of each calendar year; 1997 against 2025, relative change of a level index. Growth rates are compound annual rates between calendar-year averages.
The headline is an editor-approved record (version 2026-11-02). If a refresh moves it away from the approved figure, the page shows a neutral headline until an editor reviews it.
ONS’s component approach is quoted exactly as published for the periods ONS chose; it is not spliced onto LZVB or used in the G7 comparison.
Films: both were supplied on 2 November 2026 and every figure in them was checked against the stored sources above. They end on ONS’s component-approach estimate; the page leads with the current official series. The bakery is a made-up example in the film and on the page alike.
G7: OECD Productivity Database. Levels are US dollars per hour at current prices and current purchasing power parities, for comparing countries within one year. Growth uses each country’s chain-linked volume series. Retrieved by scripts/productivity/fetch-oecd-g7-hour.py, which reports any past value revised by more than 2%.
Regions: ONS PRODBYREG Table 2, current-price GVA per hour relative to the UK. Boundaries: ONS ITL1 January 2025, ultra-generalised, built by scripts/productivity/build-itl1-boundaries.mjs; every area joins to its data with no gaps.
Chapter 5 indexes three different measures to 2000 = 100: output per hour (UK, GDP-based), real average weekly pay (Great Britain, employees, mean, CPIH) and real household disposable income per head (UK). They are compared side by side only.
United Kingdom figures differ between sources because of coverage (GDP or GVA; UK or Great Britain), hours measures and revisions.

The short version

What does Britain produce for each hour we work?

Dan’s bakery. Same people, same hours.

The evidence

Watch first: 30 years of UK productivity in under three minutes

Has Britain become more productive?

How does Britain compare with other major economies?

Does where you work affect productivity?

If we produce more, why don’t we necessarily feel richer?

Why it is happening

What would help Britain produce more value per hour?

Who is affected most

Who feels it: income by income fifth

The lowest fifth’s typical income is £273 a week, against £1,238 in the highest fifth

Related issues

The economy in ten sections

Investigations

What could change

Offer evidence-based employment support alongside healthcare

Turn investment promises into a deliverable pipeline

Turn housing permissions into completed homes

Make childcare places work for working parents

Domain SWOT

Domain action plan

Sources, method and changes

Method notes