Lower Income Households Expected £500 Poorer by 2030

Analysis by the Resolution Foundation reveals that lower-income households in the UK are projected to be £500 poorer annually by the end of the decade due to the government's Spring Statement, which includes welfare cuts disproportionately affecting these families. An estimated 250,000 more people, including 50,000 children, are expected to fall into relative poverty as a result of these measures. Critics, including union representatives, have challenged Chancellor Rachel Reeves's claim that working households will benefit, pointing out that recent wage increases have primarily favored higher earners. The Office for Budget Responsibility has suggested that improvements in living standards will occur at below-trend growth rates, raising concerns about the overall economic outlook. As the government grapples with fiscal pressures, the Resolution Foundation's chief executive warned that 10 million working-age households could see their living standards deteriorate further. This situation highlights the challenges facing the government in meeting its living standards commitments amid economic uncertainty.