NIESR: ‘Squeezed’ middle class households now £2,560 a year worse off

Britain will feel like it’s in recession even if it isn't after a significant drop in middle-class income - and the poorest households are even worse off.

Young family spending time together at home
(Image credit: © Getty images)

‘Squeezed’ middle class households are around £2,560 per year worse off as a result of Covid and the cost of living crisis, a respected think tank has said.

This shortfall represents 8% of their income and comes despite government support such as the Energy Price Guarantee (EPG) and the £400 energy grant.

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Katie Binns

Katie is deputy editor of Times Money Mentor and long-time contributor to the Sunday Times where she started on the Irish desk in 2012 and spent 10 years covering news, culture, travel, personal finance and celebrity interviews. 

Her investigative work on financial abuse has examined the response of banks, the Financial Ombudsman and the child maintenance service to victims, and resulted in a number of debt and mortgage prisoners being set free - and a nomination for Best Finance Story of the Year at the Headline Money awards in 2021 and 2022. 

Katie was also shortlisted for Freelance Journalist of the Year at the Headline Money awards in 2022, 2023 and 2024 and won Personal Finance Journalist of the Year at The British Bank Awards 2022.