Charlie Bean, a former Bank of England deputy governor and board member of the Office for Budget Responsibility, said that growth in household incomes, after taking account of inflation, would effectively stall over the next two years.
He said: “We don’t have real household disposable income getting above pre-pandemic levels until the back end of 2023, and it’s growing at a pretty mediocre rate from then on.”
British households will remain worse off than before the pandemic until 2023 as rising inflation hits living standards.
Last week the Institute for Fiscal Studies warned that Britain was set for the worst wage squeeze in modern history, with the average worker on course to be £13,000 a year worse off by the middle 2020s than they would have been if wages had risen at pre-2008 financial crisis rates.
No comments:
Post a Comment