UK Households Are Set to Suffer Big Drop In Income

The latest report by the Institute of Fiscal Studies is likely to stir up the political pot in Britain. The study, released Thursday, says that median household income will not grow at all for the next two years, and will be just 4 percent higher in five years’ time than it is now. Per the IFS, “this would leave median household income in 2021-2022 18 percent lower than might reasonably have been expected back in 2007-2008.” That equates to more than £5,000 a year.

The government’s response: “We are taking action to support families with the costs of living by cutting taxes for millions of working people, doubling free childcare for nearly 400,000 working parents and introducing the National Living Wage — a significant pay rise for the lowest earners. More people are now in work than ever before with living standards also forecast to rise over this parliament.”