Pressure mounting on lowest earners

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There is a growing gap between the pressure felt those on lower incomes and higher earners, who saw their financial situation easing, Markit’s household finance index for February found.

Those with incomes of £15,000-£23,000 saw the strongest squeeze on their finances in the survey’s four-year history, while those earning below £15,000 recorded the sharpest deterioration in their budgets for 14 months.

By contrast, households in higher income brackets saw the deterioration in their finances slow down, while the highest earners, on £57,751 and over, saw the joint-slowest squeeze on their budgets in a year.

Four out of ten households across the survey expect their finances to worsen over 2013, while around one quarter predict an improvement.