Household disposable income will plummet a staggering 7.1% in real terms over this year and next year - the biggest drop since records began in 1956, a watchdog warned.
The grim conclusion was drawn by the Office for Budget Responsibility (OBR) after Chancellor Jeremy Hunt outlined billions of pounds of stealth taxes and cuts.
The watchdog said disposable income will still be below pre-pandemic levels by 2028.
