The Resolution Foundation says the Chancellor, John Healey, has delivered a badly targeted cost of living package. It says Budget support of up to £116 covers less than a fifth of a £600 rise in average energy bills in 2027. That holds up, since £116 is about 19% of £600.
The think tank expects energy bills to average £2,210 across 2027. It says the package is made up of the £2.6bn Household Energy Payment, a short delay to next year's fuel duty rises and a three-month extension of the electricity VAT cut.
Drawing on the OBR forecast, it says real household disposable income per person is £420 lower than two years ago and will not recover until April 2029. It expects incomes to rise by an average of 0.6% a year over this parliament, £776 in total. On its figures that would be the second worst parliament for living standards since the 1950s. Only the last one was worse, at minus 0.4% a year.
Ruth Curtice, its chief executive, said:
"The Chancellor has missed the mark with badly targeted support that has left families facing a tough winter as energy bills rise. It is also questionable whether the tight public spending plans required to meet his fiscal rules will survive reality."