UK already in recession as cost of living crisis hits household incomes

The UK economy is already in recession as the cost of living crisis has devastating consequences for household incomes, a leading think tank has concluded.

In a gloomy assessment from the National Institute of Economic and Social Research found that average real disposable incomes will fall by an unprecedented 2.5% this year and remain 7% below their pre-Covid level through 2026. 

“The UK economy is heading into a period of stagflation with high inflation and a recession hitting the economy simultaneously,” said Stephen Millard, NIESR’s deputy director for macroeconomics. 

It also estimated the number households living from paycheck to paycheck