Household income will only rise by 0.1% per annum over the next 4 years – the worst figures ever documented – warns think tank. Families face a’sobering economic reality’

  • Resolution Foundation stated that families are facing a’sobering’ economic reality
  • The Think Tank predicts that household disposable income will rise 0.1% annually
  • This level of annual growth in the next four year would be the lowest recorded. 

A think tank warned that families will be confronted with a “sobering” economic reality in the next four years. Household income is expected to rise at the slowest pace ever recorded. 

According to the Resolution Foundation: Weak wage growth and higher taxes means household disposable income will increase by 0.1% annually over the course of this parliament. 

This would be the lowest recorded growth in a parliament, surpassing the previous low of 0.3% seen between 2015-2019 under the premierships David Cameron and Theresa May. 

The think tank’s forecasts are likely to increase the pressure on Rishi, who was criticised for failing to do enough to address the cost-of-living crisis. 

The Resolution Foundation has warned families face a 'sobering' economic reality in the coming years as the think tank piled the pressure on Chancellor Rishi Sunak

The Resolution Foundation warned families that they face a’sobering economic reality’ in the next few years. This was as the think tank put pressure on Rishi Sunak, Chancellor of the Resolution Foundation

The Times was told by Adam Corlett (principal economist at the think tank) that while the Chancellor hails his budget as a “new era of optimism”, the economic reality facing families across Britain this week is far more alarming.

The official economic outlook for Britain is that it will experience the lowest income growth rate since records began. This would be a 0.1% annual rate of growth. 

‘Worse yet, we’re currently underperforming against even this terrible outlook. 

It comes after Labour warned that family food bills could increase by more than £180 next year because of spiking inflation. 

According to the Office for Budget Responsibility, inflation in the Consumer Prices Index could rise to over four percent by 2022.  

Such a rise would add about £3.50 to the cost of an average family’s weekly food shop, equating to about £183 more over the course of the year, according to Labour analysis.  

Labour accused the Government not getting a grip on the cost of living crisis. Shadow chancellor Rachel Reeves repeatedly called for ministers to reduce VAT on fuel bills in order to help families struggling this winter. 

 Mr Sunak said yesterday that he is ‘cognisant and aware’ of price inflation and insisted ‘where this Government can act we will’.