Living standards ‘not likely to improve for at least five years’
The UK households face a “gloomy” appearance in the rest of the 2020s, and is a leading thinking tank that many of them may not be better than they have begun ten years.
The Solution Foundation suggested that the current “bust, explosion and gloomy appearance” could see that the 2020s could see that the first decade of the modern era was to witness any improvement in disposable income throughout England “.
Grim estimation shows that forced to ten years marked with economic volatility is at risk of leaving typical household peoples in a stagnant financial position.
The “Central Scenario” Thinking Corporation thinks that it will grow only a little “after 2024-25, in general, or 2024-25, which is generally 1 percent or a total of £ 300 in total.
The near future looks particularly challenging. The living standards financed by the Nationwide Society say the Outlook 2025 report: “Our perspective for 2025-26 continues to be weak especially with the income office (0 percent growth).”
This stagnation is attributed to a combination of factors that cancel the pre -tax growth growth even before taking into account the increases of water, rent and mortgage, including frozen tax thresholds and rising council tax.
The report continued as follows: “Taking into account the cost of life, the typical income in 2029-30 will remain unchanged (0 percent growth) compared to 2019-20.
“This would make the worst ten years out of the last six years to grow the living standards of the 2020s.”
According to the projection, the low -income half of the non -penny population is worse in the coming years.
The foundation said that the average real revenues of this group could be lower than 2024-25 at 2029-30 (£ 200 percent).
In the report, in general, in a weak appearance, some parts of the population are expected to give better results.
Typical pension income is expected to increase by 5 percent between 2024-25 and 2029-30 and an increase of £ 1,500.
According to the research, the duration of the housing also plays an important role in determining the appearance. While the mortgage holders are preparing to see that income has fallen as they get out of fixed rates, open hosts are expected to receive support for the living standards.
For the increase in weak income in the second half of the decade, the projection follows the first half of a “Rollercoaster ğı in which living standards are shaken by the COVİD-19 and the cost of living, according to the Foundation, which focuses on improving living standards for households at low to medium entrances.
In 2024-25, income increased by 4 percent (£ 1,300), as the “mini living standards explosion” said.
The Foundation also said that the economic appearance may develop, and policies offer a “help hand için to remove the standards of living for the poorer household peoples.
Adam Corlett, the Chief Economist of the Solution Foundation, said: “So far the living standards story of the decade of the decade and explosion, Covid-19 and the cost of living, and then a very needed improvement last year.
“In this weak appearance, there are winners and losers, while retirement income is set to grow 5 percent healthy for the rest of the decade, while the poorest half of the population is preparing to see that their revenues are falling.
“However, a stronger economy and the right policy interventions can illuminate this appearance. To maintain powerful wage increase and return to pre -pandemic employment levels, making middle -income Britain much better, while ending the boundaries of the two children can remove the standards of living for the poor families.”
