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British families are £2,900 worse off after five years of price rises that crammed 13 years of inflation into just five

From the Newshound archive · first published 10 October 2026.

British families are £2,900 worse off after five years of price rises that crammed 13 years of inflation into just five

New research by the Resolution Foundation reveals UK households have experienced the equivalent of 13 years of normal price rises compressed into just five, leaving the average family £2,900 worse off than had inflation kept to its usual pace. The pandemic, the Ukraine war and Middle East conflict have driven the surge, with energy bills inflicting the heaviest blow. Meanwhile, separate figures show Christmas 2026 is set to cost the average family £1,502 — around £400 more than last year.

Since 2020, the proportion of lower-income households in arrears on energy, water, council tax and rent has almost DOUBLED.

More than a third of families surveyed say they plan to go into debt — through credit cards, loans or overdrafts — just to pay for Christmas this year.

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