Workers will also be exposed to higher rates of income tax. As tax thresholds have been frozen, despite rapid inflation, this will disproportionately hit their take-home pay.
Wages are forecast to rise by 5.2pc this year. After tax, a couple earning less than £30,000 each will see earnings growth of 4.5pc, according to analysis by Capital Economics, a consultancy. For a single person earning £53,000 – just above the frozen higher-rate threshold – post-tax wage growth will be only 3.4pc, as they will be hit hardest by the higher rates.
In real terms, workers will see incomes fall, as their salary growth will be far outstripped by inflation, which the Bank of England has warned could hit 10pc this year.
Rising energy costs already hit single people harder as standing charges are the same per property, said Ms Coles.
Single people also pay higher council tax. While they can apply for a discount, this only covers 25pc of the cost. Single parents who earn £60,000 also lose child benefits, whereas a household with a couple earning £30,000 each will keep all of them, Ms Coles added. “People who considered themselves to be reasonably comfortable will really start to feel the pinch.”