“The short-term effect of these changes will be better-funded public services,” Mike Brewer, interim chief executive of the Resolution Foundation, said.
“But families are also set for a further squeeze on living standards as the rise in employer National Insurance dampens wage growth,” he added.
The new tax and benefits policies will affect everyone, said the think tank, which aims to improve living standards for low-to-middle income families.
Disposable incomes – the amount people have to spend once taxes and benefits have been taken into account – are expected to grow more slowly due to the measures in the Budget. Real household disposable income per person is projected to grow by 0.5% a year on average across the parliament.
The Resolution Foundation calculated the incomes of the poorest half of households will grow by 0.8% less than they would have otherwise.
The richest half face a reduction in where their income would have been of 0.6%.
Wealthy households are expected to experience the biggest overall impact due to capital gains and inheritance tax changes.
The foundation expects wage rises to be hit by a combination of an already challenging outlook, weaker growth due to increased taxes on employment and higher inflation.
This will mean that by 2028 real weekly wages will have grown by just £13 over the past two decades, it said.
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