UK households could suffer the biggest annual decline in their living standards since the 1950s as the Russian invasion of Ukraine pushes up global energy prices, experts have warned.
“In time the conflict will also broaden and deepen the living standards squeeze here at home,” said Torsten Bell, the chief executive of the Resolution Foundation thinktank. “The chances of low- and middle-income households getting some respite from the growing squeeze on living standards later this year are receding rapidly.”
With inflation already at the highest rate for 30 years, analysts said a sustained rise for wholesale oil and gas markets would further add to the squeeze on families from soaring utility bills.
With growth of workers’ pay, benefits and other sources of income failing to keep pace, real household income could fall by 3.1% this year, “comfortably the largest calendar year fall since at least 1956”
The hit to living standards is expected to affect poorer households most, as lower-income families spend proportionally more on essentials such as energy and food than richer households.
No comments:
Post a Comment