Britain is set to experience the longest slump in the standards of living in more than 60 years since the start of research, according to the Resolution Foundation.
Post-Budget data implies incomes will feel pressure longer than after post-2008 breakdown. It is also clear that real earnings are about to wane for 19 quarters in a row.
The growth expectations are lowered, with the economy predicted to fall short by £42 bln in 2022 than before forecasted, Foundation analysts said.
Yesterday the independent Office for Budget Responsibility released new data, giving its estimation of the British economy for the coming years. Its figures show significant reduction of growth this year down to 1.5% from previous 2%, while expansion in the following five years is predicted considerably lower than 2%.
The current tax and benefit schemes are pulling down standards of living, at the same time bringing up inequality, and they would deprive the poorest third of families of nearly £715 per year, while increasing income of the richest third by around £185, the Resolution Foundation analysis showed.
Nevertheless, it hailed governmental measures relating to Universal Credit. A £1.5 bln package was allocated to deal with concerns over benefit delivery, along with that the waiting period of seven days for handling claims is to be abolished.