Families face the worst decade for income growth on record, worse even than the post-war rationing years, IFS warns
Prime Minister Andy Burnham speaking to ITV News, with NatWest chief executive Paul Thwaite among those criticising Chancellor John Healey for lacking ambition on growth.The freeze will also hand the Treasury an extra £71bn, with one in three London homes set to miss out on the Budget's £100 energy handout due to eligibility rules based on 1991 council tax bands.
The Institute for Fiscal Studies warns the average British family's disposable income will grow by just 2% across the entire 2020s — a worse performance than the 1950s, when post-war rationing was still in force. IFS director Helen Miller said "no amount of temporary cost-of-living packages will fix that." The Joseph Rowntree Foundation separately projects average annual household disposable income will fall by £450 between April 2024 and April 2029.
Working-age households are set to see disposable income fall by £1,050, or 3%, by 2029, according to the Resolution Foundation.
Chancellor John Healey has hinted Labour may not close the minimum wage gap between under-21s and adult workers before the next election, risking a broken manifesto pledge.