Resolution Foundation Warns of Falling Household Incomes Despite NI Cuts

Thursday, 7 March 2024, 08:33

The Resolution Foundation predicts that household incomes are poised to decline, making it the first time in modern history for living standards to drop despite National Insurance reductions. With real wages dropping over the last two decades, disposable incomes are projected to decrease by 0.9% from 2019 to 2024. This worrying trend suggests a challenging economic landscape ahead.

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Resolution Foundation Report: A Gloomy Forecast

The Resolution Foundation has alarmed experts and policymakers with its latest report, indicating a significant drop in household incomes despite National Insurance cuts proposed by Jeremy Hunt. Amid a prolonged period of declining real wages, the foundation anticipates a 0.9% decrease in household disposable incomes by the end of 2024.

The First Parliament in Modern History to Witness Falling Living Standards

The forecast paints a grim picture of the economic scenario, signaling a historic downturn in living standards. The Resolution Foundation's analysis underscores the severity of the impending income decline amidst an environment of continuously dropping real wages.

This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.