Recession hit pensioners and the poor hardest



Recession

Recession

A new report from the BBC and the IFS (institute of Fiscal Studies) has revealed that those hit hardest by the recession were pensioners and the poorest households.

They also found that the richest households were also hit very hard.

They found that across the UK, real incomes fell 1.6% a year through 2008 to 2011, which is in stark contrast to the findings that the median household income had risen by that same 1.6% a year for the previous 50 years.

Higher levels of unemployment contributed to the fall, which also saw lower levels of interest paid on savings, and a huge disparity between wage inflation and actual inflation.

The poor, or the bottom 10% of households for income, saw their real income drop 2.1% between 2008 and 2011, a fall of £182 a year, which is in contrast to the £428 a year increase they might have expected to see in the previous 50 years.

Pensioners saw their average income fall 2.4% during this period, £456 a year down, compared with an £858 a year increase before the recession.

The richest were hit the hardest, although wouldn’t have struggled to eat, seeing their income fall 3.8% during this spell, losing out on £2,230 a year, where they would normally have seen a £2940 increase.

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