(Alliance News) – The biggest impact of the dramatic decline in living standards is yet to be seen, according to new research. It shows that families across the UK are experiencing only half the lost income expected to suffer during the cost of living crisis. .
The average household across the country is projected to be £2,100 worse by the end of next financial year, according to a new analysis from the Resolution Foundation think tank.
After deducting housing costs, the typical income of a working-age family is set to decline by 3% for the year to the end of March, and then by 4% for the next 12 months.
A 7% drop would hit families harder than the financial crisis more than a decade ago.
The post-crisis squeeze only reached about 5% during the 2010-2012 fiscal year.
By 2028, household finances will be worse than they were before the pandemic, according to think tanks.
The crisis hasn’t even reached the halfway point yet, but the report’s authors say millions of people are already struggling to replicate the massive cost spikes seen this year. .
Nearly a quarter (23%) of adults surveyed said they couldn’t afford to replace or repair refrigerators, washing machines and other large appliances.
Before the pandemic, only 8% said the same thing.
We also found that 11% of researchers said they were hungry because they didn’t have enough money at some point in the last month.
Before the pandemic, 5% said they had no money and were hungry.
More than a third (34%) of the poorest one-fifth households say their health is affected by rising costs of living.
“The UK is only halfway through two years of income pressure, with the typical family struggling to live on £2,100,” said Larissa Trie, a researcher at the Resolution Foundation.
“The crisis is already hitting families hard, with more than 6 million adults reporting starving as a result.
“Low-income households have been hit hardest by rising utility and food prices, and are most likely to suffer from worsening economic and health conditions.
“The government has prioritized them in its response to the crisis, with targeted support for vulnerable households and tax increases that hit wealthier households.”
Peter Marland, Chair of the Association of Local Government Resources Committee, said:
“This will allow Congress to shift its focus from short-term crisis assistance to investing in preventive services that build financial capacity and resilience, such as welfare eligibility checks, debt advice, employment, health and housing assistance. can.”
Labour’s shadow prime minister, Rachel Reeves, said: “Many families will be alarmed to hear that this Conservative cost of living crisis is only halfway through, and it has been brought about over the years by this government. You will once again feel the serious loss.
“Britain deserves far more than 13 years of Conservative government with sluggish growth, squeezed wages, plummeting living standards and collapsed public services.”
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