The Institute for Fiscal Studies said median take-home incomes had actually increased during the recent recession.
But the institute's analysis of latest government figures suggested it was "entirely possible" that median incomes dropped by 3% in 2010-11.
The policy group said such a fall would leave median income levels back where they were in 2005.
'Pain delayed'
According to the Institute for Fiscal Studies (IFS) the squeeze from the recession on household incomes in the UK is only now being felt.
BBC News - Household incomes in UK 'may return to 2005 levels'
So does this mean there is a follow on impact for small businesses? I know there have been a few members that have said their revenue was still down, and maybe this explains it. If you are dealing in what may be considered luxury items, or maybe restaurants, B&B's etc, then maybe you are still seeing people tightening their belts.
Or do you disagree and this goes against what you are seeing in your own area/business?
