Pay-freeze to last 'til 2020! Hurray!
Are you one of those ordinary families? Great news! Your wage won't be hitting the heady-heights of pre-recession Britain 'til at least 2020, according to a depressing report from a leading thinktank. It goes without saying that the income of the wealthy will continue to rise over the same period.
The study has been produced by the independent Resolution Foundation, and look at the situation of 10 million adults who don't rely heavily on support from the state. They're called 'the squeezed middle' or something.
Basically, its those households without children that earn between £12,000 and £29,000.
Labour's welfare spokesman, Liam Byrne, will debate the report's implications with LibDem MP David Laws at the foundation's London offices. The two haven't met since the former Treasury secretary Byrne's infamous note in 2010 to his successor, Laws, which read: "There's no money left."
The report's author, Matthew Whittaker, said there was a "growing inequality of earnings", adding "members of the squeezed middle did not share in the spoils of economic growth in the pre-recession years, with wages at the median and below stagnating. Gains instead flowed primarily to higher income households and, more particularly, to those at the very top of the distribution."
"If this trend continues once growth returns it may not be just those on low and middle incomes finding themselves left behind in the next decade, but rather the majority of society."
A spokesman for the Treasury said: "The government has taken decisive action to tackle the deficit, which has helped to keep interest rates low for businesses and families. We recognise that people are feeling squeezed and the government is doing what it can to help, reducing fuel duty so taxes on fuel are 6p lower than they would have been, freezing council tax and implementing an increase in the personal allowance in April, taking over 800,000 of the lowest paid out of tax."