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| Version 0 | Version 1 |
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| Recession 'hit poor the hardest' | Recession 'hit poor the hardest' |
| (about 1 hour later) | |
| Pensioners and the poorest households are amongst those that have been the worst hit by the recession, according to a study by the Institute for Fiscal Studies (IFS) and the BBC. | Pensioners and the poorest households are amongst those that have been the worst hit by the recession, according to a study by the Institute for Fiscal Studies (IFS) and the BBC. |
| The UK's richest households have been hit even harder, however. | The UK's richest households have been hit even harder, however. |
| Across the board, real incomes in the UK fell by 1.6% a year between 2008 and 2011, the study found. | Across the board, real incomes in the UK fell by 1.6% a year between 2008 and 2011, the study found. |
| By contrast, the median household income rose 1.6% per year during the previous 50 years. | By contrast, the median household income rose 1.6% per year during the previous 50 years. |
| Incomes have fallen because of loss of employment during the recession, lower interest earnings on savings and low wage inflation relative to price inflation, the study found | Incomes have fallen because of loss of employment during the recession, lower interest earnings on savings and low wage inflation relative to price inflation, the study found |
| The poor and the rich | The poor and the rich |
| The UK's poorest, defined as the middle of the bottom 10% of households or the fifth percentile, saw their real income fall by 2.1% between 2008 and 2011, according to the IFS. | The UK's poorest, defined as the middle of the bottom 10% of households or the fifth percentile, saw their real income fall by 2.1% between 2008 and 2011, according to the IFS. |
| That is a fall of £182 per year. In normal times they might have expected their annual income to rise by £428. | That is a fall of £182 per year. In normal times they might have expected their annual income to rise by £428. |
| Pensioner households saw their average income fall 2.4% OR £456 per year, against an expected rise of £858 per year during normal times. | Pensioner households saw their average income fall 2.4% OR £456 per year, against an expected rise of £858 per year during normal times. |
| The UK's richest, defined as the top 5% of households or the 95th percentile, saw their real income fall by 3.8% during the period. | The UK's richest, defined as the top 5% of households or the 95th percentile, saw their real income fall by 3.8% during the period. |
| That is an annual fall of £2,230. In normal times they might have expected their real income to rise by £2,940 per year. | That is an annual fall of £2,230. In normal times they might have expected their real income to rise by £2,940 per year. |
| The richest would be best place to cope with falls in their incomes, the study found. | The richest would be best place to cope with falls in their incomes, the study found. |
| Families with children saw their real income fall 1.1%, or £233 per year. They might have usually seen their income rise by £1,060 per year. | Families with children saw their real income fall 1.1%, or £233 per year. They might have usually seen their income rise by £1,060 per year. |
| Families without children saw their real income fall 1.8%, or £500. They might have usually seen their income rise by £1,367 per year. | Families without children saw their real income fall 1.8%, or £500. They might have usually seen their income rise by £1,367 per year. |
| The average working age household without children saw their real income fall 1.8%. | The average working age household without children saw their real income fall 1.8%. |
| Tax and benefits | Tax and benefits |
| The richest and the poorest were the only ones who saw their real incomes reduced by tax and benefit changes during the 2008-2011 period. | The richest and the poorest were the only ones who saw their real incomes reduced by tax and benefit changes during the 2008-2011 period. |
| Changes to the tax and benefit in the year ahead are expected to push real incomes higher, however. | Changes to the tax and benefit in the year ahead are expected to push real incomes higher, however. |
| The median household income should rise by £120 as a result of tax and benefit changes, the IFS forecast. | The median household income should rise by £120 as a result of tax and benefit changes, the IFS forecast. |
| This "surprising" boost to incomes is a result of changes in personal allowances that have raised net income for many households, with direct tax rises "largely affecting only the very richest", the IFS said. | This "surprising" boost to incomes is a result of changes in personal allowances that have raised net income for many households, with direct tax rises "largely affecting only the very richest", the IFS said. |
| In addition, a lot of benefit changes that will hit families will not come in until 2012 or beyond. | In addition, a lot of benefit changes that will hit families will not come in until 2012 or beyond. |