PPI Claim News - 12/10/2011
PPI refunds: Incomes 'to drop significantly'
PPI refunds could become important as average income levels are expected to fall in the UK.
Research from the Institute for Fiscal Studies found median income will decrease by seven per cent by 2012-13. This reduction will be the biggest three-year drop in 35 years.
The study focussed on accessing poverty rates in the UK based on economic forecasts and government proposals.
Absolute poverty, as defined by the Child Poverty Act 2010, is expected to affect 600,000 more children in addition to 800,000 adults of employment age.
"Even if there were an immense increase in the resources made available, it is hard to see how child poverty could fall by enough to hit this supposedly legally binding target," said James Brown, one of the study's authors.
Once the government introduces Universal Credit, these figures should fall slightly, but by 2020-21 23 per cent of children will be in absolute poverty, the research predicts – much higher than the objectives set out in the act.
This comes after the government was urged to return to previous child benefit policies and tax credits by Alison Garnham from the Child Poverty Action Group
Charles Baker
Charles is a reputed financial analyst with decades of experience under his belt.
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