Low-paid hardest hit by recession

Published on Sunday 7 March 2010 21:58

MANY families on low pay are struggling to make ends meet, after seeing their incomes fall as a result of the recession.

Think tank the Resolution Foundation said people on low incomes had been hit harder by the economic downturn than households that were dependent on benefits or high-earners.

The report found people in households earning between 13,500 and 25,800 a year were more likely to have seen their incomes drop than other groups, particularly among those aged between 25 and 34, two-thirds of whom have suffered pay falls.

Sophia Parker, acting director of the Resolution Foundation, said: "

We need to recognise how hard many low-income families work to stay financially independent and do more to prevent them being squeezed in the mixed economy."