Economic think tanks have warned of a challenging period ahead for UK households, with living standards expected to stagnate or decline. The Resolution Foundation forecasts a 3% fall in disposable income for typical working-age households by 2029, while the Institute for Fiscal Studies (IFS) predicts the current decade will be the worst on record for household income growth. The Office for Budget Responsibility (OBR) attributes the difficult outlook to higher borrowing costs and inflation driven by the US-Iran conflict, forecasting a slowdown in GDP growth and rising inflation in 2027.
In response, Chancellor John Healey has introduced measures such as a £100 support payment to ease energy costs, but the Resolution Foundation argues this is insufficient to offset rising bills, particularly for poorer households. The think tanks highlight that after accounting for taxes, benefits, and housing costs, income gains are minimal and likely behind households already. The situation underscores ongoing economic pressures and the need for stronger growth to improve living standards, according to experts.
Read the full story: BBC UK News.
Source: BBC UK News. Aggregated summary, not independent reporting.