• News Feeds
Page last updated at 08:28 GMT, Tuesday, 11 October 2011 09:28 UK

Families 'will see biggest fall in living standards since 1970s'

Advertisement

Middle-income families are set to see the biggest fall in their living standards since the 1970s, according to a new report. The Institute for Fiscal Studies estimates the stagnating economy will also push a further 600,000 children into poverty.

Speaking on the programme the business minister David Willetts said the government is trying its best to improve the situation.

"We've tried to hold down fuel duty, six pence. We're freezing council tax. We've increased the income tax allowance. We've tried to do the things that help. But you can't ignore the basic rules of economics that when you inherit a situation where an economy has shrunk by 7%, the money isn't there," he told presenter John Humphrys.

But Labour peer Maurice Glasman said the reason for increasing poverty in the UK goes back beyond the recession. "There's real evidence that the median income has been squeezed, certainly outside the south-east since 2003. There's a lack of robust private sector growth in the regions of the country," he explained.

"I think that's a real problem. And there's been a lack of attention to vocational training; there's been a real lack of attention to regional growth."


Get in touch with Today via email , Twitter or Facebook or text us on 84844.

SEE ALSO

Story Tools

BBC navigation

BBC © 2014 The BBC is not responsible for the content of external sites. Read more.

This page is best viewed in an up-to-date web browser with style sheets (CSS) enabled. While you will be able to view the content of this page in your current browser, you will not be able to get the full visual experience. Please consider upgrading your browser software or enabling style sheets (CSS) if you are able to do so.

Americas Africa Europe Middle East South Asia Asia Pacific