How much money will you have in 2022?
Workers have been warned to expect an unprecedented two lost decades of earning growth, by the Institute for Fiscal Studies (IFS).
The current income squeeze is now set to be longer than the post-crash squeeze, with real household disposable incomes set to fall for an unprecedented 19 successive quarters between 2015 and 2020.
On average, disposable incomes are now expected to be £540 lower by 2022 than forecast in March, says the Resolution Foundation.
What does this mean for you?
Due to rising inflation, frozen benefits and stagnant wages, many people will be worse off in 2022:
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A low paid dual-earning couple with children will be £280 a year worse off in 2022.
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A couple family with one parent in work will be £350 a year worse off in 2022.
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A single parent working full time will be £700 a year worse off in 2022.
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A single parent working part time will be £1,450 a year worse off in 2022.
Some working families face losses of as much as £4,000 and all households who are out of work will be worse off in 2022.
The poorest half of households may lose about £1,500 a year by 2022, says the Equality and Human Rights Commission.
The poorest third of households are set for an average loss of £715 a year by the end of the Parliament.
Furthermore, the poorest tenth of households will lose on average about 10% of their income by 2022 – equivalent to £1 in every £8 of net income.
What help is available?
If you are on a low income or struggling financially, Turn2us resources can help you look for the help that may be available to you from benefits and grants.
You can use our Benefits Calculator to check your welfare entitlements and our Grants Search to see if you are eligible for help from a charitable fund, based on your personal circumstances and needs.
The Your Situation section on our website contains information and resources on benefits for people in several common situations.
We also have a Find an Adviser tool to help you find face-to-face advice in your local area.
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