2023-09-06 14:02:48
The British risk having experienced in a few years the worst drop in the standard of living since “at least the 1950s”, estimated Wednesday in a study by the think tank Resolution Foundation.
The most modest families “should experience (in the coming months) further declines in income, due to the rise in taxes, the end of aid to the cost of living and the increase in the cost of housing” , the organization said in a statement.
The Bank of England’s rate hikes to calm inflation, in particular, have not finished producing effects on households, in particular by causing monthly mortgage payments to soar, continues the think tank.
But while the worst of the cost of living crisis may have passed, with inflation falling and average incomes “now rising faster than prices”, that is not enough to reverse the trend, the statement says. .
“The current legislature is on track to be by far the worst in terms of changes in living standards since at least the 1950s” when the income of a typical working-age household “is expected to be 4% lower for the 2024-2025 fiscal year to where they were five years earlier, according to the foundation.
With the approach of legislative elections due to be held by early 2025, this might put the Conservatives in power in difficulty, because “since the 1960s, there has been no example of a government retaining its majority” with such a low income trend, notes the Resolution Foundation.
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