Budget 2014: Britons enjoy wellbeing boost as life satisfaction rates improve

http://www.theguardian.com/uk-news/2014/mar/18/uk-wellbeing-life-satisfaction-increase-budget-ons

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Most Britons are satisfied with their lives, despite falling incomes, deteriorating health, and a mistrust of government, according to the latest official snapshot of life in the UK.

A total of 77% of adults aged 16 and over said they rated their life satisfaction at between seven and 10 out of 10 in 2012-13, the Office for National Statistics said. It was an increase compared with 75.9% in 2011/12, as sentiment was boosted by a perceived fall in crime and increased satisfaction with living accommodation.

The broader trend of an improving sense of wellbeing came despite the fall in real incomes in the UK in recent years, with wage growth lower than the rate of inflation since mid 2008, with the exception of a brief period in 2010.

George Osborne is under pressure to announce an increase to £10,500 in the personal income tax allowance from 2015 when he presents his latest budget on Wednesday. A freeze on excise duty on petrol and diesel are also possible measures as the chancellor strives to show the government is backing hard-working families in Britain.

Against the backdrop of falling living standards, the proportion of people satisfied with their income fell from 57.3% to 52.9% between 2010/11 and 2011/12, in the latest available data from the ONS.

The Labour party has identified the cost of living crisis as a key battleground ahead of the 2015 election, vowing to freeze energy bills for 20 months if elected.

The outlook for personal finances has picked up in recent months, with inflation falling to below the Bank of England's 2% target for the first time in more than four years in December.

Economists are predicting that wage growth will once again outpace inflation by the end of 2014, easing the pressure on household budgets.

The ONS's latest report on national wellbeing, based on 41 measures, found that white and Indian females living in Northern Ireland and aged between 16 and 19, or 65 and 79, were most likely to be content.

On the flip side Black/African/Caribbean/Black British males living in Wales and aged 45 to 54 were the least content.

Britons surveyed by the ONS were feeling less healthy, with 58.6% of adults satisfied with their health in 2011/12 compared with 65.6% a year earlier.

Less than a quarter of those surveyed trusted government in autumn 2013. However, at 24%, this was more than the 22% in spring 2013, but less than the 25% in autumn 2012.

The ONS said: "Internationally, the report shows that the UK ranks above the EU average in areas such as life satisfaction, recycling rates, trust in government and satisfaction with accommodation.

"The UK is below the EU average in households making ends meet, perceived health status, and support if needed advice about a serious personal or family matter."