by editor
3. May 2011 16:52
People employed in the UK are facing the biggest financial squeeze in recent years, according to the latest figures from Deloitte. It noted that many people may find themselves in need of financial help after it emerged that real pay could be at its lowest level since the 1920s.
Deloitte asserted that many factors will force downward pressures on household incomes, with pay growth unlikely to catch up with inflation as the latter heads towards five per cent. Real earnings look like they will fall for the fourth successive year – the first time this has happened since the 1870s, meaning many may find it hard to get out of debt.
Economic adviser at Deloitte Roger Bootle said: “The upshot is that I expect households‘ disposable incomes to fall by about two per cent this year in real terms – equivalent to about £780 per household. And it will take until 2015 or so for incomes to get back to their 2009 peak.“