UK households projected to lose £1,400 annually by 2030

Living standards for UK families are expected to decline significantly by 2030. A new study suggests that average households will be £1,400 poorer as a result of rising mortgage rates, high rent, and stagnant wages. The lowest-income families will feel the impact even harder, facing a £900 drop in disposable income. This forecast raises concerns about Prime Minister Keir Starmer's promise to improve financial well-being for working people. The Joseph Rowntree Foundation (JRF) released these findings ahead of Chancellor Rachel Reeves's upcoming Spring Statement, where spending cuts are expected to be announced. The JRF study indicates that the predicted £1,400 decline represents a 3% fall in disposable income for most families. For those with the lowest incomes, the decrease amounts to a 6% loss. The analysis is based on a YouGov survey of 5,000 people, along with predictions from the Bank of England. Furthermore, the situation may worsen, as the figures do not include recent cuts of £5 billion to disability benefits. Alfie Stirling from JRF criticized the government's approach, stating that cutting benefits is not an effective way to manage financial pressures. He argued that the government should instead focus on improving living standards to stimulate growth. Chancellor Reeves faces significant challenges, including rising inflation and increased borrowing costs. She has already announced plans to cut Civil Service operating expenses by 15%. This economic outlook comes just days before her Spring Statement, which is set for March 26.