Warning over 'seven-year squeeze'

Average household incomes are set to drop by a massive 7.4% in real terms between 2009/10 and 2012/13, a respected economic think-tank has said.

Following Tuesday's autumn statement by Chancellor George Osborne, the Institute for Fiscal Studies said that the median average income was now expected to be no higher in real terms in 2015/16 than it was in 2002/03.