
A study by the Resolution Foundation thinktank said UK households had experienced flatlining living standards due to a lack of economic and pay growth in the past two years. Average incomes will not rise materially over the next two years either, it said.
The bleak forecast will hit lower-income families harder, according to the report, and child poverty could exceed previous highs reached in the early 1990s. Deprived families will bear the brunt of weak pay and benefit cuts, the report said.
While weak productivity and pay freezes were holding back living standards for most people, government policy was also hitting more deprived groups. The report noted the final year of the benefit freeze, which will reduce working-age household incomes by £1.5bn, will start in April, while the impact of the two-child limit on benefits will grow over the remainder of this parliament.












Comment: The situation in the UK is dire, and government 'austerity' is only making life worse: