More on falling incomes

There can be little doubt that real incomes in Britain have fallen significantly in recent years but it is difficult to gauge by exactly how much. Apart from uncertanties about inflation (see 30 March) there is also work to be done on different sections of the population.

A recent study by the Resolution Foundation, a think tank which defines its goal as improving outcomes for low and modest earners, builds on official data showing that in 2009 real take home pay fell for the first time in 30 years. Looking at the regional breakdown in more detail it concludes that outside of London most regions suffered declines in real income from 2003-8. Even in London, which includes many poor people, the figures for average income were bolstered by the super rich.