UK working age households are still £400 a year worse off than before the 2008 financial crisis according to Resolution Foundation.
The thinktank warns that a near “lost decade” in household incomes is in danger of being extended by a triple whammy of slower economic growth, higher inflation, and benefit cuts.
Resolution’s analysis of ONS figures found that working age households have been the ones to suffer.
Adam Corlett, economic analyst at Resolution Foundation:
Despite welcome income growth in 2015-16, the typical non-retired household remains some £400 a year worse-off than before the financial crisis of 2008.
We’re closing in on a lost decade for working-age households, which leaves the typical family around £8,500 a year poorer than would have been the case had we maintained pre-crisis levels of income growth.
The concern now is that lower income working-age households risk experiencing a ‘triple whammy’ of income recovery shocks as growth slows in the aftermath of the EU referendum vote, inflation picks up and cuts such as the four-year freeze on working-age benefits start to bite. This risks not only delaying the recovery for these families, but flipping it into reverse.