All UK families could see average living standards fall by 2030, forecast warns
All UK families could see a drop in living standards by 2030
- UK living standards are projected to decline for all families by 2030, with low-income households facing a steeper drop (6 per cent) compared to middle and high earners (3 per cent).
- The Joseph Rowntree Foundation (JRF) forecasts an average family will be £1,400 worse off by 2030, while the lowest-income families will see a £900 annual decrease in disposable income.
- This decline follows the economic impact of the Covid pandemic and the subsequent inflationary crisis, from which average disposable incomes haven't fully recovered.
- JRF suggests Chancellor Rachel Reeves should consider raising taxes on the wealthy rather than implementing further spending cuts, which they argue would be counterproductive.
- Reeves, however, emphasizes the need for fiscal responsibility and spending cuts to avoid a repeat of the 2022 mini-Budget crisis, citing rising government borrowing costs and lowered growth forecasts.