Britons face worst fall in living standards since 1950

Families with less financial conditions “should suffer [in the coming months] further reductions in income, due to the increase in taxes, the end of cost of living allowances and the increase in housing,” the organization said in a statement.

The increase in interest rates by the Bank of England – designed to calm inflation – has a negative impact on households, as it increases monthly payments on property loans, adds the Resolution Foundation.

Although the worst part of the cost of living crisis has passed, with falling inflation and average incomes “rising faster than prices”, this is still not enough to reverse the trend, the report states.

“The current legislature is poised to be the worst in terms of living standards developments since at least the 1950s,” while the income of a typical working-age household “is expected to be 4% lower” in fiscal year 2024- 2025, compared to what it was five years earlier, according to the institute.

With just over a year to go before the parliamentary elections scheduled for the beginning of 2025, this could put the conservatives in power at risk, since, “since the 1960s, there has been no example of a government that maintains its majority” amid such a fragile income trend, notes the Resolution Foundation.

In a separate publication on Wednesday, the British Chambers of Commerce (BCC) said the economy remains on track to avoid a recession, but added it will have little impact on most Britons.

“With growth expected to be very close to zero for three years”, the economic context in the UK “will look like a recession for most people and businesses”, said Vicky Pryce, of the BCC Economic Advisory Council, quoted in an announcement.

Read also

Japanese city will use robots to combat school absenteeism

A Japanese city plans to use robots to allow students to follow classes online, amid rising school absenteeism caused by anxiety and bullying, city officials said Wednesday.

* The text of this article was partially generated by artificial intelligence tools, state-of-the-art language models that assist in the preparation, review, translation and summarization of texts. Text entries were created by the Curto News and responses from AI tools were used to improve the final content.
It is important to highlight that AI tools are just tools, and the final responsibility for the published content lies with the Curto News. By using these tools responsibly and ethically, our objective is to expand communication possibilities and democratize access to quality information. 🤖