Nearly half of households across the United Kingdom say they are not experiencing any tangible benefits from the country's economic growth, according to a new analysis that lays bare a deepening disconnect between headline GDP figures and everyday financial reality. Researchers warn that the findings point to a structural problem in how prosperity is distributed, particularly between regions.

The report highlights what it describes as a "stark" gap in household spending power between the north and south of England. After accounting for housing costs, taxes and essential outgoings, families in many northern regions are left with substantially less discretionary income than their counterparts in London and the South East, even where wages and employment rates are broadly comparable.

Economists say the pattern reflects years of uneven investment in infrastructure, higher-value industries and housing supply. While the UK economy has continued to expand in aggregate, much of that growth has been concentrated in sectors and locations that do not employ the majority of working households. The result, analysts argue, is a slow erosion of public confidence in the link between national prosperity and personal financial security.

The findings carry clear political and policy implications heading into a period of constrained public spending. With energy bills, mortgage rates and food prices still elevated relative to pre-pandemic norms, many households report that even small upticks in wages are absorbed before they reach the household budget. Researchers say this phenomenon helps explain why consumer confidence surveys have remained subdued despite official data pointing to a resilient labour market.

Campaigners are calling for a renewed focus on regional rebalancing, including devolved investment, affordable housing delivery and skills programmes tied to growth industries outside the capital. Without targeted intervention, analysts warn, the gap between economic indicators and lived experience will continue to widen — and with it, public scepticism that growth translates into a better standard of life.