Household incomes across the UK are set to fall by an average of £580 over the next three years, according to new modelling that has intensified the political debate about the direction of the economy.
The figures come from analysis by the Joseph Rowntree Foundation which suggests living standards could decline rather than improve in the years ahead.
The findings challenge claims made by the Chancellor during her Spring Statement that family incomes would grow by £1,000 by 2029.
Instead, the modelling indicates many households could see their finances worsen as pressures on wages, inflation and household costs continue.
The report has prompted renewed criticism from political opponents who argue the UK economy remains under strain.
SNP MSP Fulton MacGregor said many people feel little has improved despite promises of change.
“After 14 years of Tory austerity, people were promised change by the Labour Party, but nearly two years on and all they’ve seen are bills rise and incomes squeezed.
“One day the Chancellor stands up to tell people they are going to be £1,000 better off, the next they hear they’ll be nearly £600 worse off, living standards are as flat as a pancake and people are rightly angry.
“With the limited powers we have, the SNP is providing the best cost of living support package available anywhere on these islands, be it scrapping peak rail fares, free university tuition, free prescriptions or free bus passes for young and older people, the SNP is putting more money in the pockets of hard-working families.
“These new figures are yet another reminder that broken, Britain is in terminal decline and it’s no wonder more and more Scots are concluding we need a fresh start with independence to escape broken Brexit Britain and build a wealthier, fairer and stronger country.”
The Joseph Rowntree Foundation report adds to a growing body of analysis examining how economic pressures are affecting household finances across the UK.
With living costs still high and economic growth remaining uncertain, the question of how to improve living standards is likely to remain central to political debate in the months ahead.
