UK households to suffer £4k blow to finances this year, says report

Country likely to sidestep a protracted recession, but lasting effect of cost-of-living crisis will feel like a recession'

Households in Britain will suffer a hit to their finances of up to 4,000 this year, according to a report warning that the economy could avoid recession but that, for millions, it will not feel like it has.

Adding to pressure on Rishi Sunak as the government prepares to scale back its support for energy bills this spring, the National Institute for Economic and Social Research (NIESR) said low and middle-income households were facing the biggest financial hit from the cost of living crisis.