Rachel Gomez, Economist at PBE, said: 

“As the country slides towards recession, these latest figures show the national pay squeeze has entered its 12th month, with regular earnings now 3.8% less in real terms than this time last year. The longer the squeeze on wages persists, the more damage we can expect it to do to household finances.

"The poorest households - caught between lagging pay and rising costs - will be turning to charities for support in increasing numbers. But as demand for their support increases, charities are struggling with their own rising costs and falling income – as one in four current donors say they are cutting back on giving due to the economic picture.

"Targeted support for the most vulnerable in the Chancellor’s Autumn Statement is vital. Charitable foundations and other major funders must also step in to ensure that the social sector has the resources it needs to help the country navigate the difficult months ahead.”

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