British families are £2,900 worse off after five years of soaring prices compressed 13 years of normal rises

From the Newshound archive · first published 10 October 2026.

The Resolution Foundation has calculated that typical UK households are £2,900 worse off than they would have been had prices followed their normal historical trajectory, with the pandemic and conflicts in Ukraine and the Middle East credited with squeezing 13 years' worth of ordinary price rises into only five. Around one in five lower-income households have fallen behind on essential bills, and the share struggling to meet energy, water, council tax and rent payments has nearly doubled since 2020. Richard Tice has pledged that Reform UK would cut bills and reduce the cost of living if his party comes to power.

In 2022/23, 1.7 million more households than the previous year were unable to heat their homes adequately.

Separately, a new study finds Christmas will cost the average family £1,500 this year — around £400 more than last year — with more than a third expecting to take on debt to cover the expense.