Time to catch up? Living standards in the downturn and recovery

Document type
Whittaker, Matthew
Resolution Foundation
Date of publication
12 March 2015
Employment, Poverty Alleviation Welfare Benefits and Financial Inclusion
Social welfare
Material type

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Pay fell relatively uniform across the earnings distribution following the 2008/09 financial crisis, but hit men and the young hardest. With inflation falling, there are clear signs of improvement in average pay, but a significant number continue to face pay cuts and it will take a number of years to restore pre-crisis earnings levels. Strong employment growth, tax cuts and cuts to working-age benefits have produced varying experiences in relation to household incomes. Incomes fell across the distribution after 2007, but the top experienced the biggest reductions. More recently, the middle has seen some recovery while incomes at the bottom and top have continued to fall.

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