UK household income likely to fall by £2,000 a year, says thinktank

Significant rises in the cost of food are eating into average household incomes in the UK. Photograph: EyePress News/Rex/Shutterstock

British households are only halfway through a two-year cost of living crisis, with average incomes likely to fall by more than £2,000, a leading thinktank has warned.

Typical disposable incomes for working-age family households are on track to fall by 3% in this financial year, and by 4% in the year to April 2024, according to the Resolution Foundation.