Think Tanks Warn of ‘Painful’ Years as Living Standards Stall
The Resolution Foundation says typical working-age household incomes will fall by £1,050, or 3%, by 2029. The IFS says this decade will be the worst for household income growth on record. John Healey said his Budget offered “breathing space” but conceded the government could “never remove completely” cost-of-living pressures.
The OBR called its own forecast a “pretty grim picture” and blamed higher borrowing costs and war-driven inflation. The Resolution Foundation says the £100 energy payment will not offset higher bills. It had already called the Budget “scattergun” and forecast bills averaging £2,210 next year. The politics are awkward for a government that promised to improve living standards. Healey argues that bigger giveaways would have risked the fiscal rules and gilt-market confidence. Markets expect the Bank of England to raise rates next month, which would add to the squeeze.