The UK family’s standard of living is set to fall the most since 1970

British families are facing the worst decline in living standards in half a century as rising energy prices push inflation to record highs.

According to a think tank, UK families are in line for ট 1,000 hits for their take-home pay this year.

This represents a 4 percent decline in real income, which is the largest annual loss of earnings and ability to spend since the mid-1970s, after adjusting to the effects of inflation, the Resolution Foundation said in its annual report. Attitudes for quality of life.

According to the think tank, rising inflation, which could reach more than 8 percent in the coming months, is expected to reduce real tech-home wages tenfold after the 2008 financial crisis.

Experts say the standard of living was dark even before the war in Ukraine. Rising energy bills will hit lower and middle-income households the hardest when fuel prices are lifted to 54 percent next month.

As the war continues in Ukraine, families should prepare themselves for even worse pressures, researchers say, as inflation could reach a maximum of 8.3 percent or even 8.4 percent this spring, the last time it was recorded in April 1991.

The Bank of England’s forecasts were significantly higher earlier this month before the war began. The bank then said that inflation, which they expected to rise to 7.25 percent next month, would shrink real income by 2 percent this year. This will be the largest annual decline in living standards since 1990, and five times the contraction recorded after the financial crisis.

The 4 percent fall projected by the think tank will be even bigger this year without government action to offset the impact of rising electricity prices. The government announced last month that it would give families a ছাড় 200 rebate on their energy bills in October, although it is effectively a loan, as it will be automatically repaid over the next five years, with the first 40 40 account closed next April. .

Homes in Council Tax Band A to D will receive a ছাড় 150 cash rebate in April that does not have to be paid.

Researchers have found that without significant improvement in productivity outlook – which measures output per hour – and wage growth, average household income will be lower in 2025-6 than this year.

Households that rely on benefits will be particularly at a disadvantage as benefit payments will increase next month, in line with the Consumer Price Index last September, when the rate was 3.1 percent, less than half of next month’s expected levels.

The Resolution Foundation called on the Chancellor to increase the benefit payments by another five percentage points this April, balanced by a total increase of 8.1 percent, with their growth slowing down the same amount the following year.

Adam Corlett, its chief economist, says family incomes will experience a decline not seen outside of the recession. “For millions of low- and middle-income households, this inflation-driven pressure will be exacerbated by the quality of life rollercoaster,” he said.

“Working-age benefits and state pensions will rise by only 3.1 per cent next month, while inflation could be as high as 8 per cent. The chancellor should make it an immediate priority to reconsider the benefits in his forthcoming spring statement.

He added: “In the long run, reversing the UK’s relative decline compared to other developed economies, and reversing our horrendous recent record on productivity, is the only way to meet the quality of life challenges facing Britain.”

Leave a Reply

Your email address will not be published.