A recession in the UK is yet more “devastating” news for the millions of people living in poverty who are struggling to afford the essentials but “no surprise”, charities have said.
The economy fell into a recession at the end of last year, as households cut back on spending and the Bank of England hiked interest rates in response to inflation.
Despite the government’s promise to boost the economy, GDP fell by 0.3% in the three months up to December. It followed a 0.1% drop between July and September.
A recession is defined as two consecutive three-month periods of the economy shrinking.
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Lydia Preig, the head of economics at the New Economics Foundation, said: “It’s no surprise the UK fell into a recession at the end of last year. This government’s long standing failure to invest in the economy combined with the Bank of England’s panicked interest rate rises have caused serious damage.
“Ordinary people are now suffering the effects of these decisions, with low wages and falling standards of living likely to plague us for years. This will be particularly devastating for people already in poverty who have nothing left to cut back on.