Millions of UK households are set to have £3,000 'wiped' from their incomes as the cost of living crisis worsens.
The Resolution Foundation issued a dire warning as Britain is already experiencing the biggest fall in real pay since 1977. The report from them stated a 10% fall in mean disposable income by 2023-24 "is likely to be the worst for at least a century".
The drop is equivalent to £3,000 for the typical household, reported Birmingham Live. The report also warned there will be a "sharp rise" in the number of people in absolute poverty, projected at over three million between 2021-22 and 2023-24, being the worst two-year change on record.
READ MORE: Mum 'struggling' after school uniform cost 'wiped out' her bank account
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."
They added: "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 £37bn 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."
Receive newsletters with the latest news, sport and what's on updates from the Liverpool ECHO by signing up here
READ MORE:
This Morning's Vernon Kay red-faced after Rochelle Humes' rude remark
Coronation Street Millie Gibson's exit date confirmed as show announce epic stunt
Coleen Rooney leaves fans in disbelief as she shares back to school snaps
Gogglebox's Scarlett Moffatt in tears as man tries to 'take her home'
Jamie Redknapp admits to running off after offering 'hardest man in football' a fight
