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Recession hits middle-class incomes hard

The average incomes of middle class households have fallen by almost 9% since the start of the recession, according to figures from the Office for National Statistics (ONS).

Analysis showed that the average pre-tax income dropped from £36,400 a year in 2007/08 to £33,200 in 2010/11.

Middle income households have less disposable income that at the start of the recession Credit: Dale Martin/PA Wire

A drop in the average wages and salaries of households in the middle fifth of the income distribution is to blame, the ONS said, but added that lower earnings were partly offset by higher cash benefits and lower taxes.

After adjusting for these benefits and for inflation, the disposable incomes of middle class households still fell by almost 4% from £31,100 a year in 2007/08 to £29,900 in 2010/11.