Cost of living crisis: ‘Worst is yet to come’ warns think tank, with average household ‘worse off until 2028’

The “worst is yet to come’’ for those affected by the cost of living crisis, a think tank has warned. A report from the Resolution Foundation suggests that the average household will be a whopping £2,100 worse off by the end of the next financial year.

Researchers at the thinktank found that after housing costs, the typical income for a working age family is set to fall 3% in the year to the end of March, then by 4% over the following 12 months. The 7% drop will leave households worse off than they were before the pandemic until 2028, the think tank said.