Average household incomes rise to pre-downturn levels
Average household incomes are back to the levels they were at before the financial downturn struck, the Institute for Fiscal Studies (IFS) has found.
But the recovery in living standards has been much slower than after previous recessions and changes to spending patterns suggest that people think their income prospects have taken a permanent hit, it warned.
Younger people, people on higher incomes and people without children tend to have come off worse than those in other groups in recent years, according to the findings.
The IFS said that the slow recovery in incomes has been a "remarkable feature" of the recent downturn and this comes on top of slow income growth in the years prior to the recession. The net result is that middle incomes in 2014/15 are less than 3% higher than they were a decade earlier.
The new IFS projections suggest that median or middle household incomes in 2014/15 have reached the same lvels as they were in 2007, although they are still more than 2% below their 2009/10 peak.