UK faces worst decade for household incomes, IFS think tank says
The think-tank said non-pensioner households will lose 3% in income as higher prices, taxes and housing costs continue to outpace wage growth.
- The Resolution Foundation warned on Thursday that UK household disposable incomes will fall by £1,050, or 3%, by the end of the current Parliament, excluding pensioners.
- This projected decline reflects weak real wage growth, a rising tax burden, and housing costs increasing faster than inflation, prompting critics to label Chancellor John Healey's approach as 'scattergun.'
- Office for Budget Responsibility forecasts suggest average real weekly wages will edge down 0.1% between 2026-27 and 2028-29, as researchers warn this decade is set to be the 'worst decade for growth' in household incomes.
- Prime Minister Andy Burnham defended the Budget against criticism, stating 'It's pretty bold to help 20 million households with energy costs through the council tax cut this winter.'
- Government departments face potential real-terms cuts in upcoming spending reviews as the Chancellor confronts pressure to deliver stronger real wage growth and economic stability amid persistent stagnation.
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‘Worst decade on record’: Healey’s Budget promises collide with grim warning on household incomes - London Business News
Chancellor John Healey has come under fierce fire from Britain’s business community and leading economic think tanks after his first Budget was accused of failing to deliver the investment boost… The post ‘Worst decade on record’: Healey’s Budget promises collide with grim warning on household incomes appeared first on London Business News
Healey under fire as UK faces 'worst decade for living standards on record'
John Healey is facing intense scrutiny over his plans to tighten public spending around 2030, as leading economists warned the Labour government is on course to revive an austerity programme while overseeing the worst decade of living standards on record. Budget-crunchers at two leading economics think tanks have offered scathing assessments on the state of [...]
Healey’s budget slammed for failing to tackle worst decade for UK growth on record
The influential Institute for Fiscal Studies (IFS) warns ‘no amount of temporary cost of living packages’ will fix lack of household income growth in a damning indictment of Andy Burnham’s approach to government
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