New research funded by the UK government has shown that the middle classes were hit the most by the recent recession.
A combination of plummeting house prices, pension cuts and dwindling stock markets led to well-off households, traditionally headed up by a degree holder aged between 55 and 74, losing around £25,000 each between 2007 and 2009.
The research was conducted by the Institute for Fiscal Studies, the study also found that households with less wealth, for instance younger people below the age of 35 with minimal qualifications, lost far less money during the recession, around £2,000. This is thought to be because the poorer households have less wealth to begin with, but also because their money is kept in safer assets, like building society and bank accounts, and not property or investments.
The study was commissioned by the Government’s Department for Work and Pensions as fears continue to mount that a lack of confidence and stability amongst UK households could cause more damage to an already frail economy.