MILLIONS more people face absolute poverty amid a terrifying fall in income, the Resolution Foundation warns in a report published today.

The next prime minister’s time in office looks set to be dominated by the biggest squeeze in living standards for a century, the think tank says.

According to the report, real household disposable incomes are on course to fall by 10 per cent over this year and next and the number of people living in absolute poverty is set to rise by three million to 14m in 2023-24 unless government policy or economic forecasts change.