Iran war to 'trigger 150,000 UK job losses and cost average family £730'

Iran war to 'trigger 150,000 UK job losses and cost average family £730'A former Bank of England rate-setter has spelt out the potential impact of the Middle East conflict on workers and household budgetsCommentsMoneyGraham Hiscott Business and Consumer Editor12:38, 22 Apr 2026View 2 ImagesCritics say US President Donald Trump is harming UK households through what has been dubbed "Trumpflation"(Image: Pool/ABACA/Shutterstock)The Iran war could trigger 150,000 UK job losses and cost the average households £730, experts have warned. An economic downturn caused by the Middle East conflict is forecast to hammer the UK’s already go-slow growth this year and next.‌Consultants Oxford Economics predicts the hit to firms will mean unemployment grows by 0.5%, or the equivalent of 150,000 jobs. It also warns that inflation will jump to 4.5% last year, up from the 3.3% it reached in March as confirmed by the Office for National Statistics. The jump on the scale is much more than the 3.5% peak forecast by the Bank of England and a number of other economists.‌Michael Saunders, senior advisor at Oxford Economics and a former rate-setter at the Bank of England, said: “Even if the war ended very soon, the outlook for the economy is pretty grim.”‌He also warned about the impact on household budgets from soaring fuel and other costs.“The average household will be about £730 a year worse off than we expected at the start of this year,” Mr Saunders told an event organised by think tank the Resolution Foundation. “Of course, it could be worse if the war goes on for longer.”‌View 2 ImagesFormer Bank of England rate-setter Michael Saunders says prospects for UK economy are "grim"(Image: PA)READ MORE: McDonald's set to raise UK prices due to an Iran war cost shockREAD MORE: UK Inflation hits 3.3% due to Iran War - what it means for your moneyThe concern is around both the immediate impact of the conflict, in terms of higher energy costs and the like, as we...