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2021 - the year of recovery? Yes for GDP, not so much for household incomes. In fact our living standards will decline - especially for lower income households - as unemployment rises + benefits are cut. Headline of today’s Living Standards Outlook https://www.resolutionfoundation.org/publications/the-living-standards-outlook-2021/
Some historical context to why times feel so tough. Financial crisis + post-referendum inflation spike + covid means only 8% income growth over a full 15 years between 2009-10 and 2024-25 = FIVE times less than the 38% recorded during the 15 preceding years.
Some more history lessons - govt support this year cut poverty but if £20/wk is scrapped as planned we’re on track for it to return to levels not seen since the late 90s, after which concerted efforts saw it fall. Child poverty could rise 700k by the middle of this decade
Big picture: difficult year ahead. Government’s decision on keeping £20/wk will shape what this parliament means for poorer families. And the right decision for future is obvious when you consider the past - 4yr benefit freeze cut benefits by 6% immediately pre-pandemic
Read the full report from @dan_tomlinson_ @karlhandscomb @MikeBrewerEcon @adamcorlett for a lot more details on family living standards in the early 2020s https://www.resolutionfoundation.org/publications/the-living-standards-outlook-2021/
