Average UK family 'will be £480 worse off this year' because of Iran war

Average UK family 'will be £480 worse off this year' because of Iran warA think tank estimates the combined impact of fuel price hikes and the threat of higher energy bills means many households face a real terms fall in incomes this yearCommentsMoneyGraham Hiscott Business and Consumer Editor05:00, 13 Apr 2026View 2 ImagesAn energy shock has left families facing a fall in real terms incomes this year(Image: GETTY)The average UK family will be £480 worse off this year because of the Middle East war, a think tank predicts.‌The Resolution Foundation says many households’ incomes will fall after the impact of higher inflation caused the fall-out from the conflict. The blow is a result of an energy shock due to a surge in oil prices, which has already left millions of driving reeling from pain at the pump.‌Experts warn household gas and electricity bills could also rise sharply in the summer, piling on pressure for cost of living ravaged households. According to the Resolution Foundation, the average working-age household will be £480 worse off this year than they would have been if the conflict had not taken place. Whereas their incomes had previously been on track to grow by 0.9%, it says they are now set to suffer a fall of 0.6%.‌View 2 ImagesEnergy bills and soaring petrol prices are just two of the Middle East war triggered costs set to rise this yearREAD MORE: UK driving instructors hike prices after Iran war triggered jump in fuel costsREAD MORE: Fuel stations bracing for demand surge after Easter breaks amid 'shortage' threatCritics have dubbed the surge in costs "Trumpflation", given the economic impact of US Donald Trump - along with Israel's - war on Iran. The figure is based on petrol prices remaining at around where there are - £1.50 per litre for unleaded and £1.80 per litre for diesel - and oil prices staying about at $100 per barrel, and Ofgem's energy price cap rising to £1,929 a year from July as forecast by indu...