Tuesday, October 11, 2011

UK: Annual income for the average family 'will fall £2,000 by 2013'

The typical family is facing a £2,000 fall in its annual income, leading financial experts warn. The Institute for Fiscal Studies predicts that household spending power will fall by 7 per cent in real terms between 2009-10 and 2012-13. This would mean a typical couple with two children and a total income of £30,056 would be £2,080 worse off in 2013 in real terms than they were in 2010 because their income would fall to £27,976.

It would represent the greatest fall over three years since the mid-1970s. The report says it will take until at least 2015 before typical households – which face a steeper drop than the poorest ones – recover to the levels of 2009.

The study, paid for by the Joseph Rowntree Foundation, also revealed that one in four children will be living below official poverty lines in ten years’ time.

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