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Monday, 20 March 2017 10:00

UK household income still no better than it was at the height of the financial crash

How many times have we been told that the financial industry in this country is on the up after the 2008 crash? How many times have we been led to believe that we are in a better and more solid position money-wise than we were nearly a decade ago?

The truth of the matter is that we are not any better off in many situations and the typical UK income, according to new research, is at the same stage this year as it was during the financial collapse - that is nothing to be shouting about in our opinion.

Ok, credit where credit is due, we may be in a more secure state from a national perspective, but certainly the average family cannot tell that we are out of recession. Everyone is still watching the pennies when they go to the supermarket, everyone is still using comparison sites to get their energy and car insurance at the cheapest premiums possible. It's a sorry state of affairs that we haven't moved on from this stage. It is also worrying when you question whether or not we will ever get past this stage. Wages are not going up, yet everything around us is.  The cost of living in general such as heating our homes, food bills, clothing our children  and running our cars is ever increasing and something has got to give. The standard of living is going down the further into the modern age we go - that is never right.

It is also known that so called 'millenials' (people of working age now) will be less well off than their parents were at this stage in their life - again this is something that should never happen. It has to be said that it isn't just our country that is performing this way, it is a worldwide issue but it doesn't make it right. It should be the case that children always do better than their parents did, but in actual fact kids are having to run to the bank of mum and dad for nearly everything whether it be for their first car or the deposit for their first mortgage.

A few statistics from the Institute of Fiscal Studies that may make the situation seem more real includes the news that the rate of year on year house income growth is stagnated at the smallest level for over 50 years since the big crash just after 2007.

A sad side effect of this is the impact that it is having on child poverty as well, according to the institute.

Figures are expected to show that even though we are led to believe the country is in a better place than it was a decade ago, child poverty is now on the rise to over thirty per cent in 2020, compared to 25 per cent only a couple of years ago. The two things don't tally up.

The trouble, of course, will hit the poorest the hardest. The people that work but who are on a low wage and with mouths to feed will always suffer in this situation. Inflation keeps going up, wages show no sign of rising and people don't know how they are going to bridge the gap.

Brexit has also had some kind of impact as well. Whether or not leaving the EU proves to be a good thing, the uncertainty has brought about tepidity as employers don't know how it will impact their business so therefore are unprepared to give wage increases to employees. It's a circumstance that is easy to understand both parties.

It is a sorry state of affairs when you realise that more people are in work than has ever been recorded and yet we as a country still cannot make ends meet. 

It appears that unless you are filthy rich, there will be hard times ahead.