Finally: UK living standards are now as high as they were before the recession
Time to pop open that prosecco: We're finally living as well as we were before the financial crisis hit.
After nearly a decade, the standard of living across the UK has finally returned to the levels found before the recession, however, that recovery could slow over the coming years.
The average household income now stands at £24,300, surpassing its 2009 peak, according to new research from the Resolution Foundation. But rising inflation, reduced welfare and wage growth uncertainty could slow things down, with the think tank predicting growth of just one per cent per year in future.
“The financial crisis led to one of the longest and deepest squeezes on household incomes in living memory. But the welcome recent backdrop of strong employment growth and ultra low inflation has meant that typical household incomes have finally surpassed their previous peak," said the think tank's chief economist, Matthew Whittaker.
"The pace of recovery is likely to slow over the remainder of the parliament. Substantial benefit cuts will bear down most heavily on poorer households, with many seeing their incomes fall as a result," he warned.