2010s will be worst decade for household incomes since the 1940s, Labour claims
Britain is on course to face the worst decade for household incomes since the 1940s, according to Labour.
Analysis published today by the party suggests the average family will lose around £1,000 this year alone as a result of inflation, slow economic growth and tax rises.
Figures published following March's budget forecast growth in real household disposable income (RHDI) of 0% this year.
The Office for Budget Responsibility’s numbers suggest growth forecasts will then continue to be cut next year and every year up to 2021.
That would leave the average household income growth rate at just 1% - its lowest since 1949 and well below the second-lowest of 2.3% in the 2000s and its peak of 3.2% in the 1990s.
The measure is made up of household income, non-labour income such as pensions, retail prices, and the effect of tax and benefits policies.
Shadow Chief Secretary to the Treasury, Peter Dowd, said: “Today’s analysis reveals the truth about the Tories woeful record on living standards.
“Under the Tories, real wages have fallen and tax and social security changes are leaving working families worse off. This is at the same time as the Tories have pledged to cut Corporation Tax to record low levels.
“The next Labour government will ensure working people’s living standards are protected with a real Living Wage of £10 per hour and invest in a high-skill, high-wage economy that works for the many, not the few.”
But Tory MP Amanda Milling said: "When Labour were in power they brought the country’s economy to its knees making working families pay the price.
"Under the Conservatives, three million people have the security of work and the ability to provide for their families. At the same time the gap between high earners and low earners is at its lowest levels in over 30 years. Labour’s financial plans would see higher taxes and more spending, hitting ordinary working people the most.
"Only the Conservatives can balance the country’s books and eliminate the deficit ensuring that future generations do not pay when we fail to live within our means."
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