Inequality in U.K. Set to Widen as Crisis Casts 'Long Shadow'
- Median income in 2021-22 to be 18% below pre-crisis trend: IFS
- Low-income households with children seen faring the worst
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Inequality in Britain is set to increase and poverty worsen over the next five years as earnings growth slows and planned welfare cuts start to bite, according to the Institute for Fiscal Studies.
The average household will be 5,000 pounds ($6,150) a year worse off in five years than could have been expected a decade ago, the IFS said in a report published Thursday. If Office for Budget Responsibility forecasts prove correct, the median income will show no growth over the next two years and be just 4 percent higher in five years, it said.