The Resolution Foundation reported that the lowest 10% of working-age individuals may see a 2% decline in disposable income, yet this would be offset by a 28% increase in public services benefits, indicating a complex financial landscape where public services provide essential support despite individual income stagnation.
According to Mike Brewer of the Resolution Foundation, the Chancellor's gamble hinges on the assumption that improved public services will lead to a perceived increase in living standards, albeit not directly reflected in financial terms, which poses a risk given current economic challenges.
Brewer articulated that while disposable incomes are likely to decline, the true measure of feeling better off might rely on improvements in less dysfunctional public services. This highlights an evolving narrative on economic wellbeing beyond traditional income measures.
The report indicated that rising costs, particularly in housing and council tax, are disproportionately impacting the poorest households, which complicates the living standards forecast and underscores the importance of accessible public services in maintaining quality of life.
Collection
[
|
...
]