#uk-households

#uk-households

The thinktank warned on Monday that surging gas, electricity and petrol prices had fundamentally altered the outlook for living standards in 2026. Before the Iran war erupted in late February, working-age households were tracking towards modest income growth of 0.9 per cent. That figure has now swung to a projected decline of 0.6 per cent, a turnaround worth £480 per household.

"The fall in the price cap is a welcome development and will bring much-needed breathing space for households after a prolonged period of high energy costs..."

According to MoneySavingExpert founder Martin Lewis, the "Trump effect" is helping to drive down wholesale energy prices, which means a small drop in domestic bills is likely this summer.