Millions of Britons to fall into ‘absolute poverty’: Experts
A report published by British think tank has warned that over three million more Britons will fall into absolute poverty by the end of 2024, if the new government failed to act decisively.
Resolution Foundation, in its latest report, projected households will see their spending power cut by an average £3,000 by the end of the year, and a tough winter is expected as energy bills hit £500 a month.
It also warned that real pay growth is falling at its fastest rate since 1997 and by the middle of next year real pay growth since 2003 will be "wiped out"
Lalitha Try, a researcher at the Resolution Foundation, warned Britain is entering "the biggest squeeze in at least a century" and called on the new government to take action by administering “energy support package worth tens of billions of pounds, coupled with increasing benefits next year by October’s inflation rate.”
Last week, the Office of Gas and Electricity Markets (Ofgem) revealed a distressing 80 percent hike in electricity and gas bills, bearing testimony to the country’s exacerbating cost of living crisis.
Noting that the price hike would have a "massive impact" on households across the country, Ofgem CEO Jonathan Brearley warned of yet another likely increase in January, reflecting significant pricing pressure in energy markets.
The report warned of the consequences facing children growing up in cold homes due to high fuel costs and noted child poverty will reach its highest level in the past 30 years hitting 33 percent by 2027.
The report stated that the next prime minister’s time in office looks set to be dominated by the "terrifying" prospect of the “biggest squeeze in living standards for a century”.
It suggests that the British government provides additional support with energy bill while increasing Universal Credit every April and October in periods of very high inflation.
The report stated a long term solution to improve the country’s medium-to-long-term economic outlook would be to significantly improve living standards through comprehensive new economic strategy.