IFS: Long-term effects of recession on living

15 May 2011 10:53 AM

 Average take-home incomes grew during the recent recession, increasing in both 2008-09 and 2009-10 even after taking account of inflation and in spite of the increase in unemployment.

This surprising finding comes from official statistics released last week.

However, the increase in average incomes observed during the recession seems likely to be more than unwound in 2010-11 as the long-term effects of the recession are felt and higher inflation erodes living standards.

Click HERE for full press release from Institute for Fiscal Studies