Half a million children are set to fall into poverty next year after Rishi Sunak failed to tackle the cost of living crisis in the spring statement, according to a leading think tank.
Analysis by the Resolution Foundation found that the income of a typical working-age household are to set to fall by 4 per cent in real terms in 2022/23 - a loss of £1,100.
They said that the lack support from the chancellor for those on low incomes means that a total of 1.3 million people in the UK will fall into absolute poverty, including 500,000 children.
That would be the biggest ever rise in poverty in Britain outside of economic recessions.
Sunak yesterday announced a 5p cut in fuel duty, a £3,000 rise in the national insurance contribution threshold and a plan to cut a penny off income tax in 2024.
But Resolution Foundation chief executive Torsten Bell said despite those measures, the chancellor had failed to help families facing an unprecedented squeeze in their household budgets.
He said: “In the face of a cost of living crisis that looks set to make this Parliament the worst on record for household incomes, the chancellor came to the dispatch box yesterday promising support with the cost of living today, and tax cuts tomorrow.
“Significant measures were announced on both counts, but the policies do not measure up to the rhetoric.
“The decision not to target support at those hardest hit by rising prices will leave low-and-middle income households painfully exposed, with 1.3 million people, including half a million children, set to fall below the poverty line this coming year.
“And despite the eye-catching 1p cut to income tax, the reality is that the Chancellor’s tax changes mean that seven-in-eight workers will see their tax bills rise.
“The big picture is that Rishi Sunak has prioritised rebuilding his tax-cutting credentials over supporting the low-to-middle income households who will be hardest hit from the surging cost of living, while also leaving himself fiscal flexibility in the years ahead.”