Families will see household incomes fall sharply over coming years

Figures calculated by the Institute for Financial Studies (IFS) for the Family and Parenting Institute (FPI), an independent charity, show that families with children will be on average £1,250 worse off each year by 2015/16. The predicted drop equates to an average fall in household income of 4.2% per year over the next five years. Households without children are predicted to see a smaller fall in household income of £215 per year, equivalent to 0.9%. In an effort to help reduce the size of the deficit the coalition government have already increased VAT to 20% reduced housing benefits and tax credits, frozen child ...