UK household incomes facing biggest decline since mid-70s, says thinktank

Resolution Foundation warns record-high energy prices amid Ukraine war could lead to hit worth 1,000 per household

UK household incomes are on course to collapse by the most since the mid-1970s after Russia's invasion of Ukraine sent energy prices soaring to new highs, a thinktank has said.

The Resolution Foundation said the dramatic increase in global oil and gas prices was forecast to push UK inflation above 8% this spring, causing average incomes across Britain to fall by 4% in the coming financial year - a hit worth 1,000 per household, the biggest annual decline since 1975.