Benefit reforms threaten 1 in 4 children with poverty
Households are facing the greatest fall in income for 35 years, leading financial experts warn.
The delayed impact of the recession will see £2,000 wiped off the annual income of the typical family.
The Institute for Fiscal Studies predicts that household spending power will fall by 7 per cent in real terms between 2009-10 and 2012-13. This would mean a typical couple with two children and a total income of £30,056 would be £2,080 worse off in 2013 in real terms than they were in 2010 because their income would fall to £27,976.
It would represent the greatest fall over three years since the mid-1970s.
The report says it will take until at least 2015 before typical households – which face a steeper drop than the poorest ones – recover to the levels of 2009.