Middle East War to Cost UK Households £480 This Year, Warns Thinktank
The Resolution Foundation warns that the ongoing Middle East conflict, specifically involving Iran, will significantly impact UK living standards. Rising energy and fuel prices are projected to leave the average working-age household £480 poorer this year, reversing expected income growth from 0.9% to a 0.6% decline. Since the war began in late February, oil prices have surged, with Brent crude exceeding $100 per barrel following a US naval blockade of the Strait of Hormuz ordered by Donald Trump. While some low-income households benefit from increased benefits, the poorest fifth will see reduced income growth compared to pre-war forecasts. However, families with three or more children may experience significant income growth due to the abolition of the two-child limit. The thinktank urges the UK government to accelerate the implementation of a social tariff to support vulnerable households ahead of winter, as energy bills are expected to rise further despite recent regulatory adjustments. Analysts predict elevated oil prices will persist through the second quarter, exacerbating financial pressure on British consumers.
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Middle East War to Cost UK Households £480 This Year, Warns Thinktank
The Resolution Foundation warns that the ongoing Middle East conflict, specifically involving Iran, will significantly impact UK living standards. Rising energy and fuel prices are projected to leave the average working-age household £480 poorer this year, reversing expected income growth from 0.9% to a 0.6% decline. Since the war began in late February, oil prices have surged, with Brent crude exceeding $100 per barrel following a US naval blockade of the Strait of Hormuz ordered by Donald Trump. While some low-income households benefit from increased benefits, the poorest fifth will see reduced income growth compared to pre-war forecasts. However, families with three or more children may experience significant income growth due to the abolition of the two-child limit. The thinktank urges the UK government to accelerate the implementation of a social tariff to support vulnerable households ahead of winter, as energy bills are expected to rise further despite recent regulatory adjustments. Analysts predict elevated oil prices will persist through the second quarter, exacerbating financial pressure on British consumers.
The Guardian