British households will be £1,000 worse off next year, thinktank warns

Resolution Foundation finds household incomes set to fall by about 2% amid cost of living squeeze

British households will be 1,000 worse off next year from a cost of living squeeze created by rising energy prices and shortages of workers and supplies caused by Covid and Brexit, a leading thinktank has warned.

The Resolution Foundation said higher levels of inflation would weigh down workers' earnings next year, contributing to a hit to the average household income in Britain at a time when the government is cutting benefits and raising taxes.