Households are being warned they face a £3,000 drop in incomes as the Cost of Living crisis worsens. The Resolution Foundation has issued the stark warning.
Lalitha Try, a researcher at the Resolution Foundation, said: “Britain is already experiencing the biggest fall in real pay since 1977, and a tough winter looms as energy bills hit £500 a month. With high inflation likely to stay with us for much of next year, the outlook for living standards is frankly terrifying."
The 10% fall in mean disposable income by 2023-24 "is likely to be the worst for at least a century", the report says, equivalent to £3,000 for the typical household, Birmingham Live reports. And the "sharp rise" in the number of people in absolute poverty, projected at over three million between 2021-22 and 2023-24 would be the worst two-year change on record, the report warns.
70mph speed limit on UK motorways could be scrapped by Liz Truss - read more here.
Lalitha Try, a researcher at the Resolution Foundation, said: "Typical households are on course to see their real incomes fall by £3,000 over the next two years - the biggest squeeze in at least a century - while three million extra people could fall into absolute poverty. No responsible government could accept such an outlook, so radical policy action is required to address it.
"We are going to need an energy support package worth tens of billions of pounds, coupled with increasing benefits next year by October's inflation rate. The new Prime Minister also needs to improve Britain's longer-term outlook, which can only be achieved by a new economic strategy that delivers higher productivity and strong growth."
A Government spokesperson said: "Countries around the world are grappling with rising prices but we recognise that inflation is causing significant challenges for families. We are continuing to support the economy and families through tax cuts and £37 billion worth of help for households throughout the year, including direct payments of at least £1,200 for eight million of the most vulnerable households.
"We are making necessary preparations to ensure a new government will have options to deliver additional support as quickly as possible."
READ NEXT:
Roadworks to prepare for major 3,000 home development near Clifton
'Victory' as timetable published for saved bus route serving Nottingham City Hospital
'Catastrophic' road where villagers in Calverton fear children could be 'wiped out'
A 'Marmite situation' in Wollaton as residents have say on new fees for parking permits
Busy road in Sneinton partially closed after car crashed into building
