Pensioners and the poor feeling the full impact of the recession

Rich households, poorer groups and pensioners have seen their incomes decline the most over the past three years. Previous tax changes have meant that the poor and the rich have been particularly affected in terms of income and earnings. The poorest and richest households have been worst hit by the recession, according to a study by the BBC and the Institute for Fiscal Studies (IFS). Average incomes across the whole of the country fell by 1.6% every year between 2008 and 2011. In contrast, median incomes rose by 1.6% per year in the previous 50 years.