'Year of the Squeeze' for millions in the UK, says think tank

A think tank has warned that millions of families are facing a "year of the squeeze" in 2022. The Resolution Foundation predicts higher energy bills, stagnant wages and tax rises could leave households with a £1,200 a year hit to their incomes. It said millions of families are facing a "cost-of-living catastrophe" next year. It says a 1.25 per cent increase in National Insurance contributions will cost the average household £600 a year while the higher energy bills cap is expected to add an additional £500 to spending. Both will come into force in April.
Meanwhile, the cost of living in the UK surged by 5.1 per cent in the 12 months to November, the highest increase in 10 years, according to data revealed by the Office for National Statistics. Inflation is set to six per cent in the spring, according to the Bank of England, and the Resolution Foundation warned that real wage growth, which was flat in October, "almost certainly started falling last month and is unlikely to start growing again until the final quarter of 2022."
Resolution Foundation chief executive Torsten Bell, said, "The overall picture is likely to be one of the prices surging and pay packets stagnating."