Britons are told to brace for a 'decade of pain' as households are left with £176 less every month
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 has warned that this decade will deliver the weakest household income growth since records began, with typical working-age families facing a £1,050, or 3 per cent, drop in disposable income by 2029. Income tax thresholds, frozen at £12,570 since 2021 and left unchanged by Chancellor John Healey, mean that close to seven million additional people will end up paying income tax compared with what would have happened had thresholds tracked inflation.
Those frozen thresholds are projected to deliver the Treasury an extra £71bn by 2030-31, with a further six million workers pushed into higher tax bands.
Ex-miners were left 'deflated' after Healey stopped short of releasing the remaining £1.2bn held in the mineworkers' pension fund.
Pension savers are being warned not to make 'unnecessarily costly' and irreversible decisions before inheritance tax changes hit unused pension pots in April 2027.
