worst economic slump for families on record as a long term result of the recession.
The IFS forecast shows that middle income households will take the sharpest hit to their income, around 7 per cent, and estimate that it will be 2015 or later before they will once again attain the levels they enjoyed in 2009. The forecast also shows that by 2020 the amount of people living in poverty will rise above 10 million due to the benefit and tax reforms instituted by the Coalition.
Warnings from the International Monetary Fund that the UK could be heading back into recession are fuelling concerns about the economy and reports show that families are spending less on basic essentials in an attempt to trim their spending.
Adding concerns to the already less than encouraging news are the amount of people without jobs, estimated at over 2.5 million, the hardest hit groups being those under 25 and women.
Inflation is hitting people in many careers, with earnings increasing at an average of 2.2 per cent this year but the Retail Price Index is expected to rise 3.6 percent, an unwelcome change following a period of very low inflation.