The Chancellor’s claim that households will be £1,000 better off during the current Parliament has come under pressure following fresh economic analysis and rising global tensions. While the Spring Statement highlighted projected gains in living standards, researchers at the Resolution Foundation warned that much of the improvement has already occurred and that the outlook beyond this year is far weaker.

According to the analysis, typical working-age families may see a modest rise in living standards over the coming year, with lower-income households benefiting more due to changes to child benefit rules and increases in universal credit. However, these gains are expected to fade, with families forecast to become worse off in subsequent years as wage growth slows and economic pressures mount.

The situation could deteriorate further due to conflict in the Middle East, which has driven up oil and gas prices and is expected to increase household energy bills. Forecasts suggest annual energy costs could rise significantly from July, intensifying concerns about a renewed cost of living squeeze.

At the same time, the national benefits bill is projected to continue rising in the coming years, prompting criticism from opposition politicians and business leaders who argue that welfare spending is growing while working households face stagnating incomes. Charities have also cautioned that overall living standards growth across the Parliament may be minimal, with some predicting declines later in the term.