Parliament is back in session, and Andy Burnham is set to put his promise of becoming a “cost-of-living government” into practice. Since 2021, economic and geopolitical instability has led UK households to struggle with a fall in real disposable income and inflation, particularly around food and energy prices.

Families are under sustained pressure to meet essential costs. This pressure is likely to intensify as the US-Iran conflict and disruption around the Strait of Hormuz continue to affect energy prices and the wider economy.

The Centre for Economics and Business Research has estimated that rising inflation and weaker wage growth linked to the conflict will reduce average UK household real incomes by around £1,100 in 2026, with a further £1,300 reduction in 2027. The greatest burden will fall on those already struggling, and those furthest from the decisions being made.

The government has introduced measures to try to ease the pressure, including removing VAT from domestic electricity bills.

While it is too early to judge Burnham’s government on its record, research gives us an insight into what families have experienced through years of rising costs. If governments want to understand whether their policies are working, they need to actively listen to the people most affected.

Families offer a valuable test of whether policy is working in practice, as the combined pressures of supporting children and meeting essential household costs can expose gaps in support.

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