Wealthiest pay least for the crisis

The cost of the economic crisis is not being fairly shared, according to a TUC analysis which demonstrates that people on bottom and middle incomes are suffering a bigger attack on their living standards than those at the top.

The findings, released at this year’s Congress, show that wages failing to keep up with inflation, tax and benefit changes and cuts in public services will reduce the living standards of a typical middle Britain family by more than £4,600 by 2013.

The Unhappy families report focuses on four typical families and shows that their living standards are set to be hit by between 6% and 10%.

The findings show that an average income two-earner family, living in the East Midlands with two children, will face a living standards gap of £2,000 this year — and a gap of £4,600 by the end of 2013.

An average income single parent, living in London with two children, will lose the most (10% of their salary), while a high income two-earner family, living in the South East with three children, will lose the least (6% of their pay).

TUC general secretary Brendan Barber said: “People should be angry at the effect that the crash and government policies are having on living standards.” He said the only sure way to repair the damage done by the crash is to change course and invest in jobs, growth and getting the economy moving.

The report is available at www.tuc.org.uk/tucfiles/75/UnhappyFamilies.doc