A budget that does not ‘put more pounds in people’s pockets’
Living standards are set to return to the depths experienced during the cost-of-living crisis by the end of this parliament, with those on the lowest incomes faring the worst.
New modelling from the Joseph Rowntree Foundation shows that poverty is set to rise for all family types except pensioners. The analysis shows families with children will see the biggest hit to their disposable incomes, with 100,000 more children set to be in poverty by October 2029 compared to today along with 300,000 more working-age adults.
The average family will be £770 worse off in real terms by October 2029 compared with today (October 2024).
Alongside this inequality is set to rise. The poorest third of households will see their real disposable incomes fall by 3.3% between today and October 2029, while the highest income third see a fall of 1.7%.
Single parent families will be £1,000 worse off on average by October 2029 compared to now, with couples with children worse off by £1,760.
Relative poverty is set to rise for children and working-age adults, with only pensioner households seeing a fall. 100,000 more children are set to be in poverty by October 2029 compared with October 2024 along with 300,000 working-age adults.
This news article is part of the cost of living topic.
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