CEBR: Income levels to rise in 2013

<p>Income levels in the UK are set to rise in 2013.</p>

UK households will see a rise in real income levels in 2013 for the first time since the financial crisis took hold.

This is according to the Centre for Economics and Business Research (CEBR), which stated that – taking inflation into account – incomes will climb by 0.5 per cent next year.

However, it added they will drop by 0.2 per cent in 2012.

Wage freezes have been one of the biggest effects of the economic downturn, with inflation rising significantly between September 2009 and September 2011 to stand at 5.2 per cent, according to the Consumer Price Index.

Since then, this figure has dipped to 2.6 per cent, while unemployment has soared following the credit crunch started to bite, rising to 2.59 million in July of this year.

At 16:50 BST, the FTSE 100 was 0.5 per cent lower – a drop of 26.9 points – to an index value of 5888.6 points.

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