Incomes may drop to 2004 levels

Soaring inflation and stalled wage increases mean that incomes will fall in the coming year. Britons may have to contend with a reduction in their average income over the next 12 months. UK households are set to experience the biggest drop in income for 30 years, according to experts at the Institute for Fiscal Studies (IFS). The economic think tank has warned that average incomes could fall by 3% this year, marking the sharpest drop since 1981.