– Treasury spokesman
As the IFS says, the UK is recovering from the 'longest and deepest' recession in a century.
Despite this, the labour market has remained strong: one-and-a-quarter-million private sector jobs have been created and more people are in private sector employment than ever before.
The Government understands the pressures that households face with the cost of living and has taken action to help including increasing the personal allowance, taking 2.7 million people out of income tax altogether and saving a typical taxpayer over £700, and freezing fuel duty for nearly three-and-a-half years.
Wages have fallen by more in real terms during the current economic downturn than ever previously recorded. Research shows one-third of workers who stayed in the same post following the recession suffered a cut or freeze in their wages in 2010-11.