Economic Growth Fails to Boost Life Satisfaction in the UK Post-Pandemic

Thomas Wright, Economics Correspondent
4 Min Read
⏱️ 3 min read

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Despite an improving economic landscape, life satisfaction levels in the UK remain stagnant, according to recent figures from the Office for National Statistics (ONS). The data reveals that the proportion of individuals expressing dissatisfaction with their lives has not improved since the pandemic, even as GDP per capita shows signs of recovery.

Stagnant Life Satisfaction Amid Economic Growth

The ONS’s latest survey highlights a troubling trend: while the UK’s GDP per person has seen a modest rise since 2021, average life satisfaction has not mirrored this growth. In fact, the data suggests that individuals’ feelings of wellbeing have diverged sharply from economic indicators, particularly during and after the Covid-19 pandemic.

The report notes that as of the third and fourth quarters of 2025, GDP per person stood at £10,127, reflecting a slight decline of 0.1% from the previous quarter but still up by 0.6% compared to the same period a year prior. This economic data contrasts starkly with the wellbeing indicators, which remain below pre-pandemic levels.

Trust in Government at an All-Time Low

Adding to the public’s woes, trust in the UK government remains significantly low. Approximately 21.9% of adults reported a lack of confidence in governmental institutions during a survey conducted between December 2025 and January 2026. This lack of trust may contribute to individuals feeling disillusioned about their life satisfaction, as government policies play a crucial role in shaping public sentiment.

Trust in Government at an All-Time Low

The ONS report also pointed out that the period of stability in life satisfaction that characterised the mid-2010s was disrupted by the pandemic, leading to a notable increase in dissatisfaction levels. By early 2021, 6.4% of adults reported feeling very unsatisfied with their lives, a peak not seen in nearly a decade. While this figure has slightly decreased, hovering around 5.1% in the most recent data, it still indicates a persistent level of discontent.

The figures reveal a concerning decline in reported health among the population, with the percentage of adults describing their health as ‘good’ or ‘very good’ falling from 76% at the end of 2020 to just 70.9% by the end of 2025. This decline in health is particularly alarming as it aligns with rising economic inactivity due to long-term sickness, emphasising a broader pattern of wellbeing deterioration.

Interestingly, while dissatisfaction remains prevalent, the ONS also noted a slight increase in those reporting high life satisfaction, rising from 25.5% to 26.7% over the same period. This suggests a nuanced landscape where pockets of optimism exist, even amid widespread challenges.

Consumer Sentiment Remains Gloomy

Consumer sentiment surveys further underline the prevailing pessimism among UK households. Despite a decrease in inflation rates—dropping to 3% in January from 3.4%—and steadily reducing interest rates, many individuals remain concerned about their financial futures. A GfK survey indicated a decline in consumer confidence for the first time in three months, as more respondents voiced worries about their personal finances. Similarly, an S&P Global report described the overall mood regarding financial prospects as “dismal,” highlighting anxiety over debts and savings.

Consumer Sentiment Remains Gloomy

Why it Matters

The disconnect between economic growth and life satisfaction raises critical questions about the effectiveness of current policies in addressing the holistic needs of the population. As the UK navigates recovery from the pandemic, it is essential to prioritise not just economic metrics but also the wellbeing and mental health of citizens. This dual focus will be vital in fostering a more resilient society, capable of weathering future uncertainties.

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Thomas Wright is an economics correspondent covering trade policy, industrial strategy, and regional economic development. With eight years of experience and a background reporting for The Economist, he excels at connecting macroeconomic data to real-world impacts on businesses and workers. His coverage of post-Brexit trade deals has been particularly influential.
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