UK living standards squeeze 'will be worse than after global crash'

Thinktank says low-paid will be hardest hit in next five years as inflation and welfare cuts compound slow earnings growth

Families face a worse squeeze on their living standards over the next five years than they suffered in the wake of the financial crisis, as Brexit slows the economy and Conservative welfare cuts bite, according to a new report.

Analysis of Wednesday's autumn statement by the Resolution Foundation thinktank suggests average earnings are set to grow only half as rapidly as in the austerity years after the economic crisis. At the same time, living standards will be undermined by higher inflation and ongoing welfare cuts.