The UK faces its biggest drop in living standards on record as the surging cost of living eats into people’s wages.
The government’s forecaster said that household incomes – once rising prices were taken into account – would dive by 7% in the next few years.
It also expects the number of people who are unemployed to rise by more than 500,000.
It came as the chancellor said the UK was already in recession and set to shrink further next year.
But Jeremy Hunt said his Autumn Statement – which unveiled £55bn of tax rises and spending cuts – would lead to a “shallower downturn” with fewer jobs lost.
UK faces biggest fall in living standards on record
The government's forecaster says people's incomes – once rising prices were taken into account – would dive by 7% in next few yearshttps://t.co/VkFNvFW7su
— BBC Politics (@BBCPolitics) November 17, 2022