Britain facing ‘worst decade for household earnings on record’ as disposable incomes to fall by £450

Comment now Next BRITONS are facing the worst decade for household income on record, a leading think tank has warned. The average British family’s disposable income is set to increase by just 2% over the course of the 2020s, according to the Institute for Fiscal Studies (IFS). A leading think tank has said the Budget was ‘unhelpful fiddling’ and has not done enough Credit: Shutterstock Editorial Families are facing a £450 fall in disposable income over this parliament Credit: Getty Advertisement This is the worst level of recorded growth in more than seven decades.

It means Britain is facing lower levels of household income growth than even the 1950s, when brutal post-war rationing measures were in place. Sign up for the Money newsletter Thank you! Email address Please provide a valid email. Your info will be used in accordance with our Privacy Policy You'll now receive top stories, breaking news, and more, straight to your email. IFS director Helen Miller said: “This decade looks set to be the worst decade for growth in household incomes on record.

“No amount of temporary cost of living packages will fix that. We need a stronger economy.” Read more on the Budget BEER BLOW Owner of Chancellor’s local pub warns pint prices could rise by 25p after Budget REALITY CHECK Burnham admits Budget falls short of promises as Labour backlash grows Separate analysis by the Joseph Rowntree Foundation found average annual household disposable incomes are projected to fall by £450. That’s based on projections from April 2024 to April 2029.

If incomes had grown in line with the average for the period from 1961 to the pandemic , households would have been £5,000 better off in 2029 than they were in 2024. Under current projections, this is set to be the worst parliament on record for living standards. Advertisement Most read in Money JOB LOT Huge broadband and mobile firm 'axing up to 4,000 jobs' as giant battles £22bn debt TAX TRAP White Van Man faces shock tax demands in Labour Budget smallprint, Reform warns SNEAKY SQUEEZE Labour’s £71bn stealth tax raid to drag 13MILLION Brits into paying more WALLET WIN Easy 5-step plan to BEAT rocketing bills & give your bank account a cash boost It comes after Chancellor John Healey set out his Budget this week and announced a raft of measures to help struggling households.

They included a £100 increase to the Warm Home Discount for families on benefits , as well as a £100 energy bill payment for households in certain council tax bands. But the IFS said the Budget had amounted to “unhelpful fiddling” and did not go far enough to boost the economy. It will also leave Britain facing its highest tax burden since the Second World War. Mr Healey has insisted his Budget would deliver “breathing space” for households and businesses across the country.

Advertisement “You can’t remove all the rises, you can’t remove all the pressures that people are facing,” he said. “But my aim is to say, look where we can, we’ll act, we’ll give people a bit of breathing space and [we’re] doing that with this household energy payment.” Comment now