MILLIONS of households will be pushed into poverty by soaring food and energy costs, a think tank warned today, as forecasts reveal a record drop in living standards.

The Resolution Foundation think tank said that 12.5 million people will soon be unable to afford basic necessities.

Typical working-age household incomes are set to fall by 4 per cent in real-terms in 2022-23, a loss of £1,100, while the largest falls will be among the poorest quarter of households where incomes are set to fall by 6 per cent, the think tank said.