The biggest impact of dramatically falling living standards is yet to hit, according to new research which shows that families across the UK have only experienced half of the lost income they are expected to suffer during the cost-of-living crisis. New analysis from the Resolution Foundation think tank suggests the average household across the country will be left £2,100 worse off by the end of the next financial year.
After housing costs, the typical income for a working age family is set to drop by 3% in the year to the end of March, followed by a 4% drop over the following 12 months. The 7% drop will hit families harder than during the financial crisis more than a decade ago.
The post-crisis squeeze then only reached about 5% between the 2010 and 2012 financial years. It would leave households worse off than they were before the pandemic until 2028, the think tank said.
