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Poverty and the cost of living are likely to rise and wages will fall regardless of any Brexit deal, a new report warns.

Families already trapped in poverty will see no dividend from leaving the EU, according to the Joseph Rowntree Foundation (JRF).

Research for the foundation found that living costs for low-income households could rise by £480 a year if no deal is agreed, while the driving forces of poverty will not be addressed by Brexit.

Analysis by Cambridge Econometrics, ranging from a no-deal Brexit to staying in the single market, showed that the cost of living would rise and real wages fall after the UK leaves the EU.

A no-deal outcome would have the biggest negative impact on costs and wages, said the report.

Campbell Robb, chief executive of the JRF, said: "Many people on low incomes backed Leave after being locked out and left behind for too long.

"Since the vote to leave the EU, families have been hit by price rises in the shops, seen their wages eaten up by crippling housing costs and had their tax credits pared back.

"It's hard to take control and build a better life when you're juggling the bills and high costs are pulling you under.

"Two years on from the vote, this is unacceptable, and it will not change unless the Government gets a grip and delivers for people on low incomes.

"We need a bold package of domestic reforms, not just favourable trade terms.

"The Government must fix this and right the wrong of in-work poverty.

"At the last general election, low-income voters made it clear they wanted more than Brexit delivered, demanding action on living standards too. Failing to meet their expectations of a better life after Brexit would be costly for the political parties, and it would mean millions of families being let down - and seeing no Brexit dividend."

JRF called on the Government to build 80,000 affordable homes a year, linking rents to the wages of people on low incomes and to ensure social security keeps up with the rising cost of living."