UK Families Face Projected £1,400 Annual Income Decline by 2030

Joseph Rowntree Foundation warns of worsening inequality, with low-income households hit hardest and Labour's fiscal policies under scrutiny.

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.