This week the Institute for Fiscal Studies released a prediction based on recent ONS figures stating that weak growth in the UK economy will hit low-paid families the hardest.
Katherine Chapman, Director, Living Wage Foundation said:
'The fact that low income families with children are going to bear the brunt of the ongoing squeeze on living standards makes it more important than ever that people can earn a real Living Wage, based on the cost of living. 3000 of the best businesses including IKEA, Nationwide, Google and Everton and Chelsea Football Clubs are already choosing to pay the real Living Wage, because they want to do the right thing by their staff. In these uncertain times it's more important than ever that businesses who can afford it join our Living Wage movement to provide stability and security for employees. The Living Wage ensures a robust workforce and a healthy society."
IFS said:
If the Office for Budget Responsibility (OBR)'s forecast for average earnings is correct, we project that median household income will not grow at all for the next two years, and will be just 4% higher in five years' time than it is now. Following on from the deep recession and already-tepid recovery, this would leave median household income in 2021-22 18% lower than might reasonably have been expected back in 2007-08, based on the long-run trend growth rate of almost 2% per year (see Figure below). That 18% difference is equivalent to more than...Read the full press release and dataset here.