Britain is heading for worst fall in living standards since 1950
Around 1.3 million Britons will be pushed into absolute poverty by the cost of living squeeze, a thinktank warned, after the Spring Statement failed to offer support to low-income households.
The Resolution Foundation said low-and-middle-income families will be “painful exposed” to poverty in the coming year with half a million children impacted.
Britain is heading for its biggest fall in living standards since the 1950s this year, with the double whammy of soaring cost of living charges and rising taxes in April.
In his mini-budget, the Chancellor slashed £330 off national insurance for the average worker and took 5p off the tax on a litre of petrol, but did little for the poorest households – who will see the worth of their benefits outstripped by soaring inflation.
Analysis by the Resolution Foundation found low-income families will see 6 per cent of their earnings wiped out by rising costs and taxes.
“The decision not to target support at those hardest hit by rising prices will leave low-and-middle-income households painfully exposed, with 1.3 million people, including half a million children, set to fall below the poverty line this coming year,” the chief executive of the Resolution Foundation, Torsten Bell, said.
“In the face of a cost of living crisis that looks set to make this Parliament the worst on record for household incomes,” he added.
On Wednesday evening, Rishi Sunak was challenged by a single mum during a phone-in with LBC Radio, who asked the Chancellor what more she could do to support her family.
Hazel said she had a good salary “on paper” but rising costs had put “an intense strain” on her ability to turn the heating or electricity in her home.
This single mum can't afford to turn the heating or lights on in her house due to the cost of living crisis.
She tells the Chancellor what he has offered in the Spring statement doesn't help her situation 'at all'.@IainDale | #RingRishi | https://t.co/Q8LkG3U10f pic.twitter.com/l2pypatuXe
— LBC (@LBC) March 23, 2022
Sunak said he “cannot imagine how difficult” her job was, as he has a “wife and other help”, and congratulated her for “working [her] socks off”.
He pointed to the energy bill rebate and higher national insurance threshold that will give a tax cut in July, failing to mention it will only offset a tax rise due in April.
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