Nursery World - Working families will be £1,300 worse off by the end of the decade

New analysis by the Joseph Rowntree Foundation (JRF) suggests that the upcoming Budget on Wednesday risks keeping the UK economy on a course which would see household worse off by £1,300 a year, compared to the beginning of the decade (2021).

The JRF analysis finds that without action, working families will be worse off by the end of the decade than they there were at the beginning, PHOTO: Adobe Stock

It warns that without ‘charting a new course’, the 2020s could become a ‘second lost decade’ with the ‘gulf between political rhetoric and household reality widening’.

The JRF says relative to post-tax earnings, essentials will continue to be less affordable than they were in 2021 until 2029. At the same time, the cost of housing for the average family will have risen by £1,700 a year in real terms over the same period.

Without changes being implemented in the Budget on Wednesday (6 March), the analysis suggests household earnings from work after tax will be £1,900 a year lower on average than they were at the beginning of the decade (2021).

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