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The chancellor says she “rejects” new analysis that suggests the average family could be £1,400 a year worse off by the end of the decade.

Rachel Reeves told Sky’s Sunday Morning With Trevor Phillips programme that living standards will “increase during the course of this parliament”.

She insisted there has already been a “sustained increase” since Labour came to power last year.

The analysis, by the Joseph Rowntree Foundation (JRF), says frozen tax thresholds, rising mortgage and rent costs, and falling real earnings are all predicted to take their toll on living standards in Britain.

For the poorest third, living standards are forecast to drop twice as much compared with middle and high earners.

The charity believes the government will miss one of its stated “milestones” – to raise living standards across the UK before the next election.

It says the £1,400 drop by April 2030 means a 3% fall in disposable income for the average family, while the lowest income households will be £900 per year worse off – a 6% fall.

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Rachel Reeves admits tax rises ‘impact’ the economy

The situation could be even bleaker for some, as the analysis doesn’t account for the recently announced £5bn in cuts to disability benefits.

Average earnings are also set to fall by £700 per year by 2030, according to the JRF.

The charity – which conducts research into reducing poverty – says it came up with its prediction by modelling forecasts from the Bank of England and others.

Chancellor ‘confident we will see living standards increase’

Asked by Trevor Phillips for her response to the findings, the chancellor said she “rejects” them.

Ms Reeves argued living standards in the last parliament “were the worst ever on record”, and said the independent Office for Budget Responsibility (OBR) said in October they are expected to increase, while wages are currently rising at twice the rate of inflation.

“I’m confident that we will see living standards increase during the course of this parliament,” the chancellor insisted, adding there has been a “sustained increase” since Labour was elected.

“We’ve got to do more, absolutely, in terms of raising living standards. But this government has already got started in delivering our plan for change.”

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What to expect from the spring statement

But the JRF says the government welfare cuts are “wrong” and counterproductive and wants the plan scrapped.

It also urges a new “minimum floor” for Universal Credit to help address hardship, and believes the government should instead raise cash by increasing tax on wealth and investments.

The analysis comes three days before the chancellor’s spring statement in which more cuts are set to be announced in a bid to improve the country’s finances.

Some £2bn in cuts to the civil service are expected – but Ms Reeves says they will not affect front line services.

She has also confirmed to The Sun On Sunday that she won’t be announcing any new tax rises.

Read more from Sky News:
All the planned reforms to UK welfare system
Celebrities urge government to reverse ‘shameful’ cuts

Her speech will be in response to the OBR, which on the same day will publish its own forecasts on the economy, the cost of living and government finances.

Growth is Labour’s top priority, but the Bank of England recently halved its growth outlook for the UK economy this year to 0.75%.

There are also worries next month’s hike to employer national insurance and the minimum wage will create further drag on investment.

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Crypto to become UAE’s second-biggest sector in 5 years — Institutional investor

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Crypto to become UAE’s second-biggest sector in 5 years — Institutional investor

Crypto to become UAE’s second-biggest sector in 5 years — Institutional investor

The crypto industry is set to experience massive growth in the United Arab Emirates (UAE) due to its pro-tech and business regulations.

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Blockchain security must localize to stop Asia’s crypto crime wave

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Blockchain security must localize to stop Asia’s crypto crime wave

Blockchain security must localize to stop Asia’s crypto crime wave

Without localized risk detection and public–private cooperation, illicit capital will continue to flow unchecked, and trust in the system will collapse.

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Thousands more Afghans affected by second data breach, ministers say

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Thousands more Afghans affected by second data breach, ministers say

Thousands more Afghan nationals may have been affected by another data breach, the government has said.

Up to 3,700 Afghans brought to the UK between January and March 2024 have potentially been impacted as names, passport details and information from the Afghan Relocations and Assistance Policy has been compromised again, this time by a breach on a third party supplier used by the Ministry of Defence (MoD).

This was not an attack directly on the government but a cyber security incident on a sub-contractor named Inflite – The Jet Centre – an MoD supplier that provides ground handling services for flights at London Stansted Airport.

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July: UK spies exposed in Afghan data breach

The flights were used to bring Afghans to the UK, travel to routine military exercises, and official engagements. It was also used to fly British troops and government officials.

Those involved were informed of it on Friday afternoon by the MoD, marking the second time information about Afghan nationals relocated to the UK has been compromised.

It is understood former Tory ministers are also affected by the hack.

Earlier this year, it emerged that almost 7,000 Afghan nationals would have to be relocated to the UK following a massive data breach by the British military that successive governments tried to keep secret with a super-injunction.

Defence Secretary John Healey offered a “sincere apology” for the first data breach in a statement to the House of Commons, saying he was “deeply concerned about the lack of transparency” around the data breach, adding: “No government wishes to withhold information from the British public, from parliamentarians or the press in this manner.”

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July: Afghan interpreter ‘betrayed’ by UK govt

The previous Conservative government set up a secret scheme in 2023 to relocate Afghan nationals impacted by the data breach, but who were not eligible for an existing programme to relocate and help people who had worked for the British government in Afghanistan.

The mistake exposed personal details of close to 20,000 individuals, endangering them and their families, with as many as 100,000 people impacted in total.

Read more on Sky News:
Data breach victims sent spam emails
Afghan data leak timeline
MoD urged to reveal details of nuclear incident

A government spokesperson said of Friday’s latest breach: “We were recently notified that a third party sub-contractor to a supplier experienced a cyber security incident involving unauthorised access to a small number of its emails that contained basic personal information.

“We take data security extremely seriously and are going above and beyond our legal duties in informing all potentially affected individuals. The incident has not posed any threat to individuals’ safety, nor compromised any government systems.”

In a statement, Inflite – The Jet Centre confirmed the “data security incident” involving “unauthorised access to a limited number of company emails”.

“We have reported the incident to the Information Commissioner’s Office and have been actively working with the relevant UK cyber authorities, including the National Crime Agency and the National Cyber Security Centre, to support our investigation and response,” it said.

“We believe the scope of the incident was limited to email accounts only, however, as a precautionary measure, we have contacted our key stakeholders whose data may have been affected during the period of January to March 2024.”

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