Families ‘will be better off in 2013’

Published on 17/09/2012 00:00

Households will enjoy the first increase in real income next year for the first time since the credit crunch struck.

It will be middle-income earners and poorer families that benefit the most, the Centre for Economics and Business Research (CEBR) said.

The report predicts that families will enjoy a much-needed increase in income next year as high inflation drops. It forecasts a welcome return to economic growth.

Real incomes for middle-income and poorer households have fallen every year since the start of 2008 and are set to drop again this year by 0.2 per cent due to slow wage growth and high inflation.

This is set to change as the economy recovers, with the CEBR forecasting growth of 0.5 per cent next year. Its research suggests incomes will rise by 1 per cent for middle-income households.