Britons ‘7% poorer’ over three years

 UK household income has fallen by seven per cent in real terms, according to a new study.

The Institute for Fiscal Studies has calculated that between 2007-08 and 2010-11, the average household saw its income fall seven per cent in real terms.

Furthermore, this came after several years of weak income growth in real terms, meaning households were effectively five per cent worse off than they were in 2004.

Such low growth may form part of the explanation as to why many people took on more debt to bolster their living standards before the financial crisis, with recent low wage increases and high inflation adding to the strain.

People who owe significant amounts of money but have lower incomes may find debt consolidation measures are needed to help them take control of their situation.

The people who are managing their finances best are those whose upbringing has taught them to avoid using credit and only spend what they already have, Phil Perry, advisor and director at Ark Financial Planning recently commented.

Posted by Paul Thacker