Millions UK Households Face £200 Income Drop by 2030

New analyses and surveys reveal a challenging economic outlook for millions of UK households, with the typical income for the lower-income half of non-pensioners projected to fall by one per cent between 2024-25 and 2029-30, potentially leaving many £200 worse off. The Resolution Foundation's Living Standards Outlook 2025 warns that the 2020s may become the first decade in modern history without disposable income growth across Britain, with stagnant wages, frozen tax thresholds, and rising costs such as council tax, water, rent, and mortgages eroding financial gains. Pensioners are expected to fare better, with incomes projected to rise by approximately £1,300 over the next five years, unlike families with children who face flat or declining incomes. Public sentiment underscores the economic strain, as a record 26% report struggling to live on their current income, while dissatisfaction with public services like the NHS has reached a historic high. Despite government efforts to support working people through measures like tax freezes and wage growth commitments, many voters remain unconvinced that current policies will resolve the cost of living crisis, especially as debates continue over welfare reforms and taxation. Overall, the decade ahead appears bleak for household finances, with living standards growth on track to be the worst in sixty years.