Pre-recession recovery is eight years away for the squeezed lower-middle class
Lower to middle income (LMI) earners will continue struggling to pay bills for another eight years at best, says a new study by independent think-tank Resolution Foundation.
The research reveals that a staggering 5.8 million households can not afford basic necessities, with 45 per cent not being able to pay for a holiday, and 24 per cent unable to pay for a night out with the family.
The ‘Squeezed Middle’ typically has an average household income of £25,600 before tax, leaving them approximately £20,500 after deductions. The group has been hit most by the financial crisis which broke out globally in 2008.
‘Job insecurity and low pay are the pervasive feature of Squeezed Britain. Theirs is a daily struggle to keep up with the rising costs of essentials, and to meet goals such as saving or buying a home,’ says a spokesperson for Resolution Foundation, which conducted the study.
The report exposes a disappointing forecast for LMI households wishing to buy a home, with a 22-year wait to save up a deposit.