Typical family ‘will lose £4.6K by 2013’

Wages failing to keep up with inflation, tax and benefit changes and cuts in public services will reduce the living standards of a typical middle Britain family by more than £4,600 by 2013, according to a new TUC analysis.

Wages failing to keep up with inflation, tax and benefit changes and cuts in public services will reduce the living standards of a typical middle Britain family by more than £4,600 by 2013, according to a new TUC analysis.

In Unhappy Families, the TUC looks at how the living standards of four typical families have been hit by changes in policy and rising living costs. It says an average income two-earner family, living in the East Midlands with two children, will face a living standards gap of £2,000 this year – and a gap of £4,600 by the end of 2013; an average income single parent, living in London with two children, will lose the most (10 per cent of their salary); and a high income two earner family, living in the South East with three children, will lose the least (six per cent of their pay).

TUC General Secretary Brendan Barber says: "People should be angry at the effect that the crash and government policies are having on living standards.

"The wrong people are paying the price for what went wrong over thirty years and the coalition’s naive belief that they can put right the damage in just four years.

"As experts worry about a double-dip recession it is time to change course to invest in jobs, growth and getting the economy moving. This is the only sure way to repair the damage done by the crash."

The TUC, which holds its annual conference next week, assumes that wages will go up in line with the government’s projections; takes into account the likely effects of RPI inflation, again using government projections; allows for the increase in personal tax allowances, but takes into account changes to tax credits and child benefits; and says it uses a well-established model to work out the value of the public services used by each family that will be cut.





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