Biggest three year fall in household incomes since early 1990s

<p><p>Over the long run, the income of the median (middle) UK household has increased by about 1.6% per year on average after taking account of inflation. So over a typical three year period real incomes would rise by about 5%. However, new IFS research published today estimates that in the three years from 2008 to 2011 real household incomes will in fact have fallen by 1.6%, or £360 a year. So households are likely to be about 6% worse off than they might have expected had incomes risen in the normal way. </p><p>This research was funded by the BBC and the ESRC Centre for the Microeconomic analysis of Public Policy at the IFS. </p></p>