The situation will decline further the following year with a 4% fall in 2023-24, leaving families £2,100 worse off and only the very richest households seeing their incomes rise, shows the latest research by the Resolution Foundation.

The Foundation’s annual Living Standards Outlook 2023 uses data from a YouGov survey of 10,470 adults to assess how people are coping with the cost of living crisis this winter, and looks ahead to how the scale and nature of the crisis will evolve in the years ahead.

The report notes that the financial year ahead (2023-24) should be one in which inflation starts to fall rapidly, having spent much of 2022-23 at double digit levels.