Working-age households within Britain will not see any improvement in living standards ahead of the next general election expected in 2024, according to a leading think tank.The Resolution Foundation predicted in
report On Wednesday, she said that “the typical working-age household income in the UK will be 4% lower for the 2024-2025 financial year than it was 5 years ago.”
“While average wages in Britain are currently growing faster than consumer prices as inflation begins to ease, gains will be offset by an increase in taxes, mortgage payments and the end of government cost of living assistance,” the institution said.
The institution pointed out that “the increases adopted by the Bank of England in interest rates to reduce inflation specifically, continue to affect households, especially by causing a rise in monthly mortgage payments.”
“High mortgage rates, sharp tax increases and a stagnant economy mean that workers in the UK were on track ahead of legislative elections expected in 2024 to suffer the worst income drop in a five-year period since the fifties,” the institution said.