Find out if you're likely to get richer or poorer in the next five years

Are things finally starting to feel a little easier with money? Or are you still watching every penny just to get by?

According to the Resolution Foundation’s latest Living Standards Outlook, many people in the UK won’t see much improvement in their finances over the next five years. Some could even see their income fall.

But there are some signs of hope, if the right changes are made.

Here’s what the data says about whether you’re likely to get richer or poorer by 2030.

What’s happening to incomes overall?

• Typical disposable income after housing costs is only set to rise by 1% – that’s around £300 between now and 2030.
• This comes after a ‘mini boom’ in 2024-25, when incomes grew by 4% (£1,300).
• Without change, this could be the first decade in modern history with zero income growth overall.

Who’s likely to get poorer?

Some groups are facing a tougher few years ahead:

Low-income families

• Incomes are expected to fall by 1%.
• That means less money for essentials like food, bills and transport.

Families with children

• No income growth at all is expected over the next five years.

Housing tenure plays a key role in determining the outlook.

People with mortgages

• Expected to see their incomes drop by 1% on average, as high interest rates continue to hit households coming off fixed-rate deals.

Who’s likely to get richer?

A few groups are expected to see gains:

Homeowners with no mortgage

• Outright homeowners, who don't have mortgage payments and the worry about interest rates, are expected to see the biggest boost in living standards, with their incomes set to grow by 3%.

Pensioners

• Incomes could rise by 5% (£1,500).

Can anything change this outlook?

The report finds that a stronger economy and better policies could turn things around.

Here’s what could help:

Continued strong wage growth

• If wages keep rising and more people get back to work, typical incomes could grow by 3% instead of 1%.

Ending the two-child limit on benefits

This policy currently caps benefit support at two children per family.

• Scrapping it could:
  • raise incomes for the poorest half by £200
  • lift 500,000 children out of poverty
  • be funded by extending the personal tax threshold freeze for just one year

What you can do now

While you can’t control the economy or government policy, here are a few ways to protect your finances:

• make a budget to track your income and spending
• shop around for better deals on bills and credit
• stay informed about policy changes that could impact your benefits or taxes
• check you’re getting all the benefits you’re entitled to with our benefits calculator