Britons face the worst decade for household income growth on record, even worse than the post-war 1950s, think tank 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 — the worst performance in over seven decades of records. Joseph Rowntree Foundation projections show annual household disposable incomes will fall by £450 between April 2024 and April 2029. IFS director Helen Miller called the outlook 'depressing', saying no cost-of-living package can fix the need for a stronger economy.
Working-age households are set to lose £1,050 in disposable income by 2029, even as wages rose 3.7% — barely above inflation at 3.5%.
Had incomes expanded at the long-run average rate since 1961, households would be £5,000 ahead in 2029 compared with 2024.
