Average income for UK workers will be worse in 2024 than 2019, think tank predicts
This parliament is the worst on record for income growth, a think tank has concluded after research into UK living standards revealed the average income for a UK worker is projected to be 4% lower in 2024 than in 2019.
A report published today by Resolution Foundation laid out the likely backdrop of living standards for a 2024 election, and, unsurprisingly, it does not look good for the Tory Government.
Although Rishi Sunak may meet his target of halving inflation by the end of 2023, the report lays out little sign of relief from cost of living pressures into the future, predicting three-years of income stagnation for UK workers, into 2025-26.
With a looming general election, this does not bode well for the Tories, with no example of a government ever managing to retain power with such a weak median income growth since comparable records began in the 1960s.
The report also found that an extra 300,000 people are projected to fall into absolute poverty next year, with living standards projected to decline for lower-income households into 2024-25. Whilst income inequality will continue to rise, as a tenth of households with the most savings wealth will account for two thirds of savings interest in 2023-25.
Pensioners are predicted to fare the best going forward, with households aged 65-74 set to gain six times as much on average as those under 35.
With an evolving cost of living crisis, the think tank concluded that there is little sign of relief for those most at risk of harm from higher living costs, and warned policy makers not to forget this challenge in the run up to the election.
Hannah Davenport is news reporter at Left Foot Forward, focusing on trade unions and environmental issues