The UK faces a collapse in living standards, higher bills, tax hikes and increased unemployment as the economy slumps into recession.

A majority of households will be worse off as a result of Chancellor Jeremy Hunt’s budget today, which will see the cap on energy bills increase and the tax burden rise to its highest sustained level since the Second World War.

For many Reading residents, particularly in south and central Reading, this means a crisis winter ahead.

Among them is Dawn Whitehead, 58, from Newbury, who said her family has ‘no life’.

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"It means we cannot have a holiday, no meals out, etc, as every bit of cash is going towards bills,” said Ms Whitehead.

“We have no life. Prices for electricity need to be reduced, there’s no other way we will survive in the long run."

Her feelings were echoed by Laura Saunders, 42, from a single mum of four and secondary school teacher from Reading.

She said: "We already have little excess income to spend on ourselves beyond food, petrol and bills and it is going to get so much worse."

The Chancellor blamed Russian president Vladimir Putin’s invasion of Ukraine for a “recession made in Russia”, with the spike in energy prices driving up inflation, but he was also being forced to manage the financial turmoil caused by his predecessor Kwasi Kwarteng’s mini-budget in September.

Karen Emery, 62 from Reading said: "I am dreading the winter as I know I can’t afford to heat my home which means my osteoarthritis will be at its worst with the cold I feel hopeless and angry at the government."

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In an effort to get a grip on the public finances, Mr Hunt set out plans for almost £25 billion in tax increases and more than £30 billion in spending cuts by 2027-28.

Household energy bills will also increase from April, although Government help will continue.

The energy price guarantee will rise from £2,500 to £3,000 for an average household’s annual energy bill – but Mr Hunt said that would still mean an average of £500 support for every household in the country.

Julia Banks, 56, from Mortimer Common, said: "Our outgoings already exceed our income so we won't be heating the house this winter."

The Office for Budget Responsibility (OBR) forecast unemployment would rise by 505,000 from 3.5 per cent, to peak at 4.9 per cent in the third quarter of 2024.

Inflation is expected to be 9.1 per cent over the course of this year and 7.4 per cent next year, contributing to a dramatic fall in living standards.

Part-time librarian Susan Stonard, from Winnersh, said: "I'm feeling depressed, anxious, desperate. We need improved welfare payments and easy access to food banks when no food in house for the children, without referral."