Socialist Worker

Recovery, what recovery?

Issue No. 2250

While the Tories talk of a “fragile economic recovery”, life is getting increasingly worse for most people—not better.

A new report published by the accountancy firm Deloitte predicts that this year will be the worst for household finances since 1977.

It forecasts that disposable income will go down by

2 percent for the average household.

It says that the gap between inflation and low or non-existent pay rises is one factor behind falling living standards.

Meanwhile, a report from the Organisaton for Economic Cooperation and Development says that the cuts are hitting children.

“Progress in child poverty reduction in the UK has stalled and is now predicted to increase,” it says.

“Spending cuts, such as cutting benefits for pregnancy and childbirth, and a freeze on child cash benefits, will affect many families.”


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Tue 3 May 2011, 18:14 BST
Issue No. 2250
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