Families may never recover from economic downturn
In the UK, average earnings are now at 2003 levels, thanks to a lack of pay rises, the rising cost of living and increasing reliance on loans to try and get out of the mess, according to data from the Office for National Statistics.
And worse still, is that millions of families may never see their finances recover.
The Resolution Foundation said it could take as long as 15 years for living standards to recover to what they were pre-downturn. If things are to turn around, incomes would have to grow by a rate of 3.3 per cent, per year, which is never going to happen. While living standards worsen, the government is tightening our belts for us by reducing support for tax credits and benefits.
Families in the middle-to-low income bracket, according to figures, are not able to keep up with bills, with seven per cent behind on at least one bill and over half having no savings at all. With that in mind, if anyone is wanting the security of getting onto the property ladder, figures show that it would now take an average of 22 years to save for a deposit on a first home.
Matthew Whittaker, senior economist at the Resolution Foundation, said: "There is a long road to travel just to get back to where living standards stood before the crisis - and the prospects of actually recovering the ground lost over recent years appear vanishingly thin. Every extra month of falling household incomes is harder to take than the last as household budgets get closer to the edge."
A Which!!! survey has shown similar results. They showed that more than a third of people have increased their total level of debt in the past month, with six million households using their savings to cover bills or buy food.