8 per cent this spring, even beat the 8.4 per cent rate recorded back in April 1991, the highest level registered since 1982. Accordingly, the London-based think tank is warning the chancellor Rishi Sunak to take urgent steps to support the poorest families in the country, pointing out that high inflation and weak wage growth would drive more children into poverty.
According to the Foundation, without the £350 boost provided as part of the government’s energy support package, damage for household incomes would have been even greater. Without taking this into account, Bank of America analysts have projected the biggest drop in living standards since at least 1956.
Meanwhile, retail industry bosses are warning that consumer spending will be hit by the ongoing squeeze on living standards, restraining UK’s economic growth from the pandemic. “The future is looking increasingly uncertain, with current demand unlikely to be sustained,” Helen Dickinson, the chief executive of the British Retail Consortium, said. “The cost of living will continue to spiral due to global inflation, increasing energy bills and the rise in national insurance this spring. With households facing lower disposable income, discretionary spend will be one of the first things to feel the squeeze.”
