Think tanks warn of painful years ahead as living standards set to fall

According to the Resolution Foundation and the Institute for Fiscal Studies, typical working-age households in the UK are set to see disposable income fall by £1,050, or 3%, by 2029. The Office for Budget Responsibility attributes the difficult financial situation to higher borrowing costs and inflation linked to the US-Iran war. While Chancellor John Healey announced a £100 energy support payment for around 20 million households, think tanks say this will not be enough to offset rising energy bills and broader cost-of-living pressures.