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Households 'more than £800 a year worse off because of Brexit'

Brexit: Households are hundreds of pounds worse off since last year's referendum, a new economy study suggests: PA
Brexit: Households are hundreds of pounds worse off since last year's referendum, a new economy study suggests: PA

Households are more than £800 worse off per year because of Brexit, a new economic study suggests.

The average family is paying £404 extra a year due to price inflation since the July 23 vote in 2016, the report found.

At the same time the average worker has lost £448 – the equivalent of one week’s pay – because of a stagnation in wage growth, according to the survey published on Monday.

Dr Thomas Sampson, who co-authored the Centre for Economic Performance research, said: "Even before Brexit occurs, the increase in inflation caused by the Leave vote has already hurt UK households.

"Our results provide compelling evidence that, so far, UK households are paying an economic price for voting to leave the EU."

Dr Sampson's research revealed that the rise in inflation has been lowest for households in London while Scotland, Wales and especially Northern Ireland have been worst hit.

According to the report the largest inflationary effects have been on product groups with high import shares.

These include bread and cereals; milk, cheese and eggs; coffee, tea and cocoa; beer and wine; furniture and furnishings; and jewellery, clocks and watches.

The rise in food prices has led think tank the Food Foundation to raise concerns that "five-a-day" may become unaffordable for millions of Britons.

In a new report the foundation claimed that in a no deal Brexit scenario, price rises would mean the poorest 10 per cent of the population could spend half of their entire food and drink budget to meet current Government guidance for fruit and veg.

The report goes on to identify 16 of our 50 favourite fruit and veg which could be grown more in the UK, meaning less reliance on imports and more competitive prices.

Anna Taylor, executive director of the Food Foundation, said: "The Government faces a clear choice to boost British harvests of fruit and veg or the NHS will reap the consequences."

She added: "It is absolutely crucial that the Government grabs the bull by the horns before the Brexit boat sails."