A new report has revealed that the standard of living of Britain’s middle class is edging closer to that of the poor rather than the rich.
The Institute of Fiscal Studies study showed half of middle income families with children rent their homes rather than owning and get 30 per cent of their income from benefits and tax credits. Millennials are also increasingly turning to their parents to tackle sky-high rents.
The report argues that the income of working households needs to be lifted to bring families above the poverty line.
Robert Joyce, an author of the report and a director at IFS, said: “Tackling low income is increasingly about tackling the problems faced by low-earning working households.
“Ultimately substantial progress will depend crucially on economic policies that push up productivity. Economic uncertainty following the Brexit vote will only serve to make these challenges all the tougher”.