UK and Ireland trailing the rest of Europe for quality of life
The UK and Ireland are the worst places for quality of life in Europe, according to the latest uSwitch.com Quality of Life Index. High living costs, below average Government spending on health and education, short holidays and late retirement have kept the UK firmly at the bottom of the list - below countries including Spain, France, Germany and Poland. France has taken the top spot for the second year running, despite families earning an annual net income of only £32,766 - £4,406 below that of the UK.
Importantly, the UK now no longer enjoys the highest net household income in Europe after falling behind Ireland, the Netherlands and Denmark. This is a critical blow as people living in the UK were previously able to see a trade off between poor quality of life, but a relatively high net income. This is coming to an end. While last year net household income in the UK was £10,000 above the European average, this year it is just £2,314 above average. But still quality of life remains among the poorest in Europe.
The uSwitch.com study examined 16 factors to understand where the UK sits in relation to nine other major European countries. Variables such as net income, VAT and the cost of essential goods, such as fuel, food and energy bills, were examined along with lifestyle factors, such as hours of sunshine, holiday entitlement, working hours and life expectancy to provide a complete picture of the quality of life experienced in each country.
The findings show that people in the UK and Ireland have the poorest quality of life, while the French and Spanish enjoy the highest. The UK pays the highest prices for food and diesel yet spends below the European average (as a percentage of GDP) on health and education. People in the UK work longer hours, retire later, and receive less annual leave than most of their European counterparts. They enjoy less sunshine along the way and can expect to die two years younger than their French counterparts.
France, which has topped the index for the second year running, enjoys the earliest retirement age (joint with Poland), spends the most on healthcare (11% of GDP) and has the longest life expectancy in Europe. Its workers also benefit from 36 days holiday a year - compared with just 28 in the UK - and it comes only behind Spain and Italy for hours of sunshine.
Spain enjoys the most sunshine - but it has more to smile about than just that. The Spanish can expect to live a year longer than people in the UK and enjoy the highest number of days holiday in Europe - an impressive 43 days. And, while the Spanish Government spends the least on education, its public can enjoy the lowest prices for alcohol.
Ann Robinson, Director of Consumer Policy at uSwitch.com, says: "Last year compared with our European neighbours we were miserable but rich, this year we're miserable and poor. Whereas some countries work to live, UK consumers live to work. In fact we work harder, take less holiday and retire later than most of our European counterparts - but the high cost of living makes this a necessity rather than a choice. With salaries failing to keep up with inflation, it's likely that we're a long way from achieving the quality of life that people in other countries enjoy.
"The picture looks bleak for British consumers with confidence crumbling as the reality of the Government's deficit reduction starts to bite. Uncertainty over jobs, interest rates and taxes has left nearly half of consumers (45%) concerned about their finances and more than 24 million (49%) feeling worse off than ever before. Perhaps unsurprisingly given how life in the UK compares, three in ten people (30%) believe that now is a good time to emigrate.
"But for those of us who decide to stick it out and ride the storm, there will be no choice but to batten down the hatches. There are positive signs that consumers are already cutting back, curtailing spending and trying to clear outstanding debt, but more could be done. Taking control of our household finances may be the only way we can steer through these turbulent times until we reach a point where we can start to see our quality of life improve."
Health
The UK's investment in health and education - or lack of it - has significantly impacted on its score in the Quality of Life Index. Notably, the UK spends just 8.2% of GDP on health, compared to a European average of 9%. Only Poland spends less - just 6.2% of GDP - while by contrast France spends an impressive 11%. Spend on education is also below par at just 5.5% of GDP, compared to the 7% invested in Sweden.
But, with the British Government looking in all directions to cut public spending ahead of its Spending Review on 20th October, things could get worse before they get better. So far, the National Health Service has been excluded from the review, but more than £300 million has already been shaved off the education budget, with quangos the hardest hit.
Lack of investment into health and education could well be a contributing factor to the UK's lower than average life expectancy with evidence suggesting that people who are better educated live longer and in better health than those who are less educated. France, Spain, Germany, Holland, Sweden and Italy all enjoy longer life expectancy than the UK, where the average person can expect to live to 79.
Wealth
The study shows that the average net household income in the UK, £37,172, still sits above the European average - but only just. Last year our net income was the highest in Europe, but this year it lags behind Ireland, Holland and Denmark. In fact, UK households now earn £7,783 less than our Irish counterparts after all taxes have been paid - last year we earned £6,558 more. This comes despite the fact that UK workers put in an average of 37 hours a week, compared to 35 in Ireland, 34 in Denmark and 31 in the Netherlands.
And people living in the UK also have to contend with a high cost of living - the average household energy bill alone adds up to £1,195 a year while UK homes pay the highest prices in Europe for food and diesel. Although not essential, alcohol and cigarettes are also way more expensive than elsewhere in Europe. A British smoker can expect to pay around £6.30 for a packet of cigarettes, while somebody in Poland will pay just £1.70 per pack.
A separate uSwitch.com study shows that British consumers are feeling the pinch with nine million (18%) using debt to fund their living costs and seven million (14%) struggling to meet existing repayments. Looking ahead to the next six months, six million consumers (13%) say they will struggle to pay household bills on time and four million (8%) may have to default on credit repayments. The situation is not helped by 49% of consumers experiencing a pay freeze, UK unemployment hitting its highest level since December 1994 and wide public sector job losses expected as the new Government cuts spending.
Happiness
As it stands, people in the UK can expect to work four years longer and die two years younger than their French counterparts. Workers in the UK put in an average of 36.6 hours a week. Spain, France, Italy and Poland all work longer hours, but they also benefit from more time off. While workers in the UK are entitled to 28 days holiday a year, the Spanish enjoy 43 days off a year, plus almost double the hours of sunshine with which to enjoy them. Sadly for UK workers, over a lifetime of work (45 years) they will get just over three years off as holiday, while their Spanish equivalents will enjoy over 5 years off and get to retire earlier.