"The thinktank warned on Monday that surging gas, electricity and petrol prices had fundamentally altered the outlook for living standards in 2026. Before the Iran war erupted in late February, working-age households were tracking towards modest income growth of 0.9 per cent. That figure has now swung to a projected decline of 0.6 per cent, a turnaround worth £480 per household."
"For the poorest fifth of UK households, the picture is particularly stark. Average income growth for this group is now expected to reach just 1.2 per cent, barely half the 2.8 per cent forecast before the US and Israel launched strikes on Iran on 28 February."
"Jonathan Marshall, the Foundation's principal economist, said household energy bills were set to climb again this summer, effectively cancelling out the £117 average saving delivered by Ofgem's reduction of the energy price cap from April."
Escalating energy costs due to the Middle East conflict are projected to decrease typical UK household finances by nearly £500 this year. The Resolution Foundation indicates that gas, electricity, and petrol prices have negatively impacted living standards, shifting expected income growth from 0.9% to a decline of 0.6%. The poorest households will see minimal income growth, while families with three or more children may benefit from policy changes. Energy bills are anticipated to rise again, negating recent savings from the energy price cap reduction.
Read at Business Matters
Unable to calculate read time
Collection
[
|
...
]