Falling real wages will push 3 million more Britons into poverty, warns report | News

Falling real wages will push 3 million more Britons into poverty, warns report | News
Falling real wages will push 3 million more Britons into poverty, warns report | News

High food and energy prices will put three million more people in poverty in Britain next year, according to a new study by the think tank Resolution Foundation (RF). This is due to the fall in real wages.

With the current policy, a total of 14 million people will live in poverty, the report says. That is three million people more than today or almost a fifth of the population of Great Britain, which has 67 million inhabitants. Relative child poverty, when parents can spend less than 50 percent of their net income on their families, could rise to 33 percent in 2026 and 2027.

Two weeks ago, inflation in Britain passed the 10 percent mark. Because there is no automatic indexation of wages when the lifespan increases, as is the case in Belgium, the British have much less purchasing power with the same wage.

A survey by the research institute Opinium also shows that almost half of the British will not be able to pay the maximum price for energy on 1 October, which will be about 4,100 euros per year for an average family.

New Prime Minister

Next Monday, the British government will announce who will succeed Boris Johnson as Prime Minister, Liz Truss or Rishi Sunak. Resolution Foundation emphasizes that the new government will have to take significant support measures to meet the economic problems in the country.

Ceiling prices for electricity and gas are expected to rise in January and April to prevent suppliers from going bankrupt due to high market prices. The think tank is proposing higher social benefits and assistance with paying utility bills.

Free unlimited access to Showbytes? Which can!

Log in or create an account and don’t miss out on any of the stars.

Yes, I want free unlimited access

The article is in Dutch

Belgium

Tags: Falling real wages push million Britons poverty warns report News

NEXT NEIGHBORHOOD REPORTING. Along the F11 bicycle highway between Antwerp and Lier: “It’s quite a social event here” (Deurne)