UK Households Face £400 Hit to Living Standards, Study Shows (1)

Higher taxes and bills will leave the typical UK household £400 ($517) worse off in the coming fiscal year despite an inflation-busting increase in the minimum wage, analysis by the Resolution Foundation think tank found.

Close to half the total, £170, is due to the ongoing freeze in income tax thresholds as well as Labour’s £26 billion increase in national insurance contributions on employers, which kicks in on Sunday and will be passed on to households “through lower wage growth,” Resolution said.

Rising council taxes, a sub-inflation increase in benefits and higher water and energy bills will mean the median ...