Britons to 'wait until 2020' to get income back to pre-recession levels
Study claims those on a low-to-middle income will struggle to gain the same income they did in 2007 until at least 2020
Britons to 'wait until 2020' to get income back to pre-recession levels”
Many Britons will have to wait until at least 2020 to receive pre-recession levels of income, according to new research.
Independent think-tank the Resolution Foundation has published a study called Squeezed Britain which analysed the effect the global financial crisis had on low-to middle-income (LMI) households.
This group, which has an average household income of £25,600 before tax, have seen their wages largely stagnate since 2003 but have seen the price of essentials soar. In fact, a total of 41 per cent of LMI households' income is spent on housing, energy, food and transport.
With the government set to cut tax credits over the coming years and benefits and wages also likely to fall, the report claims it be another eight years for these households to have the same living standards they did in 2007.
The study said: "Job insecurity and low pay are the pervasive feature of Squeezed Britain.
"Theirs is a daily struggle to keep up with the rising costs of essentials and to meet goals such as saving or buying a home."
Posted by Jack Ramsey
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