×

In the UK, money can buy you happiness

In the U.K. it seems that money can buy you happiness, according to a report by the country's Office of National Statistics.

People with a higher household income reported increased life satisfaction, happiness and lower levels of anxiety.

479871915MC00009_The_Royal_
Matt Cardy I Getty Images

However the level of earnings don't necessarily increase peoples' sense of purpose, and those seeking greater fulfilment should spend more, the report suggested..

"The experiences that expenditure brings appear to increase peoples' enjoyment of life", the report said.

But the extent to which money can buy happiness is limited, with the link between earning more money and greater happiness levels strongest among lower income groups.

Read MoreMoney can't make you happy: Here's what can

"Well-being increases fastest in relation to increases in income and expenditure from the lower levels", the report said.

Household income is an important focal point for political debate in the United Kingdom.

While the U.K. economy goes from strength to strength, real wage growth has struggled to reach pre-recession highs.

In April, pay growth and inflation grew by the same level for the first time in almost four years, according to figures released by the Office of National Statistics.

Total pay growth had risen to 1.7 percent in the three months to February, mirroring the increase in consumer prices which are a measure inflation.

And politicians have voiced concerns that the U.K. economic recovery is not being evenly distributed amongst society.

Read MoreThe Perfect Income for Happiness? It's $161,000

Last month the U.K.'s main opposition party leader Ed Milliband announced plans to increase the minimum wage through the next parliament by linking it to the U.K's average earnings.

"We will say workers on minimum wage must never be left behind because those who work hard to create our nation's wealth should share in it," Milliband said in a speech.

The minimum wage in Britain is currently £6.31 ($10.62) an hour, and is due to rise to £6.50 in October. The average annual salary in Britain is currently £26,500 ($44,572), according to the Office of National Statistics.

Follow us on Twitter: @CNBCWorld