Households across the UK experienced a decline in their average take-home incomes in 2010-11, new research has revealed.
Figures released by the Institute for Fiscal Studies (IFS) have shown that median remuneration packages slipped by 3.1 per cent throughout this period, despite the fact the wider economy enjoyed a moderate recovery during the 12-month timeframe.
This represents the biggest one-year fall recorded by the body since 1981 and means that the typical amount of cash taken home by Britons was no higher than in 2004-05 after the effects of inflation are factored in.
The IFS attributed this negative trend to a combination of climbing inflation and the delayed impact of the recession, which began in the latter part of the 00s decade.
Jonathan Cribb, research economist at the body, indicated this could continue in the coming years.
"Our forecasts suggest that median incomes will have fallen further in 2011-12 and median incomes will be no higher in 2015-6 than they were in 2002-03," he said.