The Institute for Fiscal Studies said the delayed impact of the recession would lead to the biggest real terms fall in average incomes for 35 years and the longest slump in family finances on record.
Typical families will suffer a sharper drop in their incomes than the poorest. It will take until at least 2015 before the typical household recovers to the levels of 2009, the study found.
At the same time, the number of children and adults living in poverty will rise to more than 10 million by 2020 as a result of the Coalition’s tax and benefit reforms.
How have you been affected by the financial crisis? Has your household income decreased? Are you having to make cuts?
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