New Analysis from the Joseph Rowntree Foundation out this morning ahead of the Chancellor’s spring statement this week shows families worse off by £1400 by 2030.
If this is the case it would mean missing the Prime Minister’s living standards milestone just four months after it was announced and Labour could be the first Government since 1955 to see a fall in living standards across a parliament.
The lowest income households will be £900 per year worse off than they are today, a 6% fall in their disposable income.
While the poorest third are disproportionately affected and could see their overall incomes fall twice as fast compared with the middle and the top.
However perhaps most concerning of all is the risk that this could take place alongside a widening of inequality, with living standards for the poorest deteriorating around twice as fast as for everyone else under this Labour Government.
In the report, the Think Tank are calling for targeted interventions to boost living standards and address hardship, as well as safeguarding disability benefits from cuts.
Speaking on Sky News, The Chancellor Rachel Reeves rejected the conclusions of the report
‘I’m confident we will see living standards increase during the course of this parliament.’
