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.

Relative child poverty is projected to reach 33 per cent in 2026-27, its highest level since the peaks of the 1990s.

The 10 per cent fall in mean disposable income by 2023-24 “is likely to be the worst for at least a century,” the report said, equivalent to £3,000 for the typical household.

The foundation called for people to receive additional support with their energy bills, a rise in social security benefit rates for next year in line with October’s inflation figures and for universal credit to be increased every April and October during periods of very high inflation.