EY says a "long period of low inflation" means average earnings could rise faster than the cost of living as early as this month.
It believes low inflation and a strong pound will keep an interest rate rise on hold until the end of 2015.
The auditor also thinks the UK economy will see "decent but unspectacular" growth of 2.9% this year.
Most of that growth will continue to be driven by consumer spending, according to the firm's forecasting group, the EY ITEM Club.
It adds that spending power will be helped by average wage increases of 1.7% this year, overtaking its 1.6% average inflation forecast for 2014.
Its latest report reads: "We expect wage growth to overtake CPI inflation as early as April."
"Until now the recovery has been financed by a fall in the amount households save, but it appears to be moving to a firmer footing," said Peter Spencer, the club's chief economic advisor.
"The consumer upturn will be given a boost from real wages and rising employment, while investment is finally kicking in."
Falling petrol, energy and food prices, driven low by a strong pound, will help keep the cost of living down for a sustained period, Mr Spencer added.
"We are set for a long period of low inflation as pressures from commodity prices... remain largely absent."
With inflation under control and a stronger pound, the club predicts the Bank of England will keep interest rates on hold at 0.5% until the third quarter of 2015, at which point rates will rise very gradually.
The EY ITEM Club also suggests the recent resurgence in the UK housing market will be dampened by tighter mortgage lending criteria, due to take effect from 26 April.
It says the new Financial Conduct Authority (FCA) rules, which impose stricter checks on whether borrowers can repay home loans, are "crucial to keeping the lid on the market", particularly in London.
As a result, the report predicts prices will rise by 7.4% this year and 7.2% next year, slowing further to 4.2% in 2016 as the government's Help to Buy mortgage guarantee scheme ends.
"The FCA will assume crucial importance to ensure... affordability is scrupulously checked," said Mr Spencer.
"If these controls are rigorously applied this will eventually constrain London prices, and head off problems when interest rates rise."
Meanwhile, the growing demand for labour should push up wages and could also see the UK overtake Germany as the country with the highest employment in the G7 group of leading economies, the group claims.
It predicts the UK unemployment rate, currently at 7.2%, will fall to 6.5% by the end of the year and 6% by the end of 2015.
The EY ITEM Club, also expects business investment to grow by 9.1% this year in another boost to productivity and wages.

Chevron said the Alder project has already created hundreds of jobs across the UK, including in Aberdeen and Invergordon.
Gas produced from the field will be sent via a 17-mile (28km) pipeline to the ConocoPhillips-operated Britannia platform.
The Alder field was discovered in 1975.
Chevron said development was originally considered impossible due to the challenges of the field's reservoir, lying 14,700ft (4,480m) beneath the seabed.
The company said it was now viable due to the "right combination of technology, infrastructure for processing and export, and commercial conditions".
Chevron Upstream Europe managing director Greta Lydecker said: "First gas at Alder represents a significant milestone for Chevron and highlights our commitment to investing and developing resources in the UK.
"Alder supports our goal of helping maximize the economic recovery of the UK, adds significant production to our portfolio, and helps extend the field life of Britannia, an important asset to Chevron in the North Sea."
Deirdre Michie, chief executive of industry body Oil and Gas UK, said: "It shows the opportunities that are still out there."
She called for a "stable fiscal regime" to help boost investor confidence in North Sea exploration and production.
Wages are set to rise by more than inflation for the first time in almost six years, says an economic forecaster.
[NEXT_CONCEPT]
Gas production has started from a North Sea field first discovered more than 40 years ago when its development was considered "impossible".