Cost of living: Warning UK faces biggest income squeeze in nearly 50 years

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Cost of living: Warning UK faces biggest income squeeze in nearly 50 years
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War in Ukraine will push up energy prices and see UK families squeezed even further, a think tank has warned.

"The crisis in Ukraine has increased both the scale of price rises but also the degree of uncertainty about their levels and duration," the Foundation's report said.

The only saving grace is the time of year. At least if the weather improves , we can start using less energy and leaving the car at home becomes easier for many. That could help people to divert cash to cover the rising prices in shops, which we will have to pay whatever the season. For example, most working age benefits and the state pension are due to rise by 3.1% in April - a time when the increase in the cost of living could be as high as 8%. But high inflation in 2022 should lead to bigger payments next year.

He suggested that surging gas and oil prices would worsen the "cost of living crisis", causing a "painful squeeze on family incomes"."We could see income falls of 4% in the financial year that's about to kick off, we never see that outside of significant recessions," he said.

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