Growth in UK living standards hits 60 year low, two year wage freeze expected

by Dramelin 8:30 AM 0 comments

"This sustained slowdown in income growth is unprecedented in at least the last 60 years.
New research from the U.
K.
`s Institute of Fiscal Studies suggests that Britons` household incomes will be frozen for the next two years, before rising just four percent by 2021-22.
"And even under such an optimistic scenario, median income would grow by less than 7 percent over the next five years ? still slow growth by historical standards.
However, even by more bullish estimates, median U.
K.
incomes in 2021-22 could expect to be 16 percent lower than pre-crisis forecasts, the report claims, pre-empting criticism that it presents an overly "gloomy" forecast.
By this point, median household income will be 18 percent lower than might reasonably have been expected prior to the financial crash of 2007-08, when household incomes were increasing by an average of 2 percent annually, the report claims.