According to a report by the Centre for Economics and Business Research and the Institute of Social and Economic Research for the BBC?s Panorama programme, rising inflation coupled with stagnating salaries means that the average worker now takes home ?1,088 less a year than they did just two years ago.
This represents a five per cent pay cut, in real terms, on what they were earning at the beginning of 2009 - in the middle of the recession .
The study found that 659,000 households are already struggling to meet mortgage payments, with 117,000 in arrears .
Furthermore, if the Bank of England decides to increase the base rate of interest by one percentage point, a further 36,000 households will find it difficult to make mortgage payments .
It comes the same week as a study by MGM Advantage, which calculates that rising inflation means UK households need to find an extra ?1,496 a year on average more than they did 12 months ago to maintain their standard of living.
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