‘Groundhog year’: UK disposable incomes to fall by 3.8% in 2023

The Resolution Foundation thinktank forecasts a drop in living standards for a second year as the cost of living crisis deepens

Households are facing a groundhog year" in 2023, as soaring gas bills and planned tax rises squeeze disposable incomes and send living standards tumbling for the second year running.

Higher mortgage costs as fixed-rate loans come to an end and new deals are negotiated will add to the financial burden already felt by millions of households reeling from the worst fall in living standards in a century.