Half of UK families £110 a year worse off since 2019, report says

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Half of the UK families have seen their disposable incomes shrink in the last two years, according to new analysis.

A report by a left-of-centre think tank shows that the poorer half of the population have had their incomes squeezed.

The richest 5% of people are better off than the rest of us, according to the New Economics Foundation.

Incomes in the north east have not risen as fast as those in London.

The think tank questioned the success of the government's "levelling up" policy, which aims to improve standards of living and productivity in areas of the UK that have traditionally been left behind.

The Department for Levelling Up, Housing and Communities did not respond to the request for comment.

The pledge may have helped the Conservatives win votes in the so-called "red wall" region in the north of England that traditionally elected Labour MPs.

In the two years since the election, the lowest half of the population in every region apart from London and the east of England saw their incomes squeezed by an average of over a hundred dollars per year.

The "red wall" area has been hit the hardest by the widening of the gap in incomes. The average disposable income in the north east of England has risen by just £20 a year.

In the south east, incomes have gone up.

Families with single parents were the most affected. The incomes of people in Yorkshire and the Humber and the north west and Merseyside fell more than those in London.

"With prices expected to continue increasing, the threat of a rise in interest rates and ongoing effects of Brexit, things could get a lot tougher for families that have already suffered most."

The minimum income floor could be introduced to better reflect the true cost of living for families in the short-term.

There are ongoing labour shortages, supply chain issues and extra red tape after the UK leaves the EU, which is causing prices to go up quickly.

The Office for Budget Responsibility warned in October that the cost of living could rise at its fastest rate in 30 years.

The governor of the Bank of England and the chancellor acknowledged that household budgets are strained. Mr Bailey apologized for the situation. "None of us want to see that happen," he said in November.

Economics.
The cost of living.
The economy of the UK.