Think Tank Criticizes Budget, Citing Negative Impact on Households and Housing Costs

The Resolution Foundation criticized John Healey's Budget, calling it poorly targeted and lacking transformative change. The think tank calculated that the decision to abolish flat-rate standing charges on energy bills, replacing them with higher unit costs, would leave an estimated 9.9 million households worse off. Furthermore, the foundation noted that private-sector rents have risen 23 per cent since the last Local Housing Allowance uplift, while the government intends to keep that allowance frozen until 2028.

The criticism centers on the Budget's failure to address major economic challenges, with the Resolution Foundation predicting that incomes could fall cumulatively by about 3 per cent by the end of the parliament. The policy changes regarding energy and housing are cited as contributing factors to increased living costs for many families.