Overview

• The Joseph Rowntree Foundation predicts the average UK family will see a £1,400 annual drop in disposable income by 2030 due to frozen tax thresholds, rising housing costs, and falling real earnings.
• Low-income households are expected to experience a 6% decline in disposable income, double the 3% drop forecast for middle and high earners.
• The report criticizes the Labour government for welfare cuts and calls for increased taxes on wealth and investments as an alternative to spending reductions.
• Chancellor Rachel Reeves has rejected claims of falling living standards, emphasizing fiscal responsibility and ruling out new tax increases in her upcoming spring statement.
• The analysis does not account for recently announced £5bn cuts to disability benefits, which could worsen the financial outlook for vulnerable households.