UK household incomes near pre-banking crisis levels, thinktank claims

Institute for Fiscal Studies report finds that falls in inflation and unemployment, together with modest wage rises, have raised household spending power

After the longest decline in living standards this century, the fortunes of Britain's workers have turned - with the average household ending the financial year in April better off than they were in 2008, according to a leading thinktank.

In a huge pre-election boost for the government, the Institute for Fiscal Studies (IFS) said average incomes in 2014-15 are around the same level as they were in 2007-08 - before the banking crisis precipitated a deep recession.