How the recession has affected UK household income and expenditure?

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TABLE OF CONTENTS

CHAPTER 01: INTRODUCTION1

Background of the Study1

Aims and Objectives1

Research Questions2

CHAPTER 02: LITERATURE REVIEW3

The Impact of Recession3

Unemployment3

Social Effects3

Impact of recession on Households in the United Kingdom4

CHAPTER 03: METHODOLOGY5

Overview of Research Approach5

Rationale for Qualitative Approach6

Data Analysis7

REFERENCES8

CHAPTER 01: INTRODUCTION

Background of the Study

The recession and the financial crisis had a substantial effect on the households in the United Kingdom. The recession in the Untied Kingdom has now just lowered the rates of employees and increased unemployment, it have been impacting the households by a modest growth in the wages, by a limiting the access to borrowing, decrease in the prices of the houses and the equity market and recently, they have been impacted due to the increasing inflation, which have been corroded the actual power to spend their incomes (Hall, 2010, pp. 3).

The recession during the 1930s in the United Kingdom was considered to be the longest and deepest and it had an effect on all the individuals of the economy. Therefore, dissimilar households were affected to diverse extents. These households responded by reducing their consumptions in numerous ways (Layton and Banerji, 2003, pp. 1789).

Aims and Objectives

This research study will assess the affects if the recession on the United Kingdom's household income and expenditure. In the light of this aim, the research study will meet the below mentioned objectives.

To highlight the recession in the United Kingdom

To explore the impact that recession had on the households in the United Kingdom

To evaluate the affects that recession has on the household income and expenditure in the Untied Kingdom

Research Questions

This research study will answer the below mentioned questions.

What were the reasons of recession in the United Kingdom?

What was the impact that recession had on the households in the United Kingdom?

What are the affects that the recession has on the household income and expenditures in the United Kingdom?

CHAPTER 02: LITERATURE REVIEW

The purpose of this research is to take an in depth look at the way in which the recession has affected the households' income and expenditure in the Untied Kingdom. In this section, we have reviewed the literature on recession and the affects it had on the income and expenditures of the households that could help in understanding the ways in which savings and spending can be made better.

The Impact of Recession

Unemployment

One of the significant affects of recession is the unemployment. People face layoffs because the businesses are bound to reduce their operating costs. The low skilled labours and young hires are most vulnerable to unemployment. It takes almost 5 to 6 years for unemployment to obtain its original level. It creates issues with the business as the employment discrimination claims increase during recession (Blundell and Ben, 2010, pp. 76).

Social Effects

As the unemployment increases, it brings lower standard of living. The spending power of people goes down because of minimum salaries. On the other side, the loss of jobs has a negative impact on the families' stability (Blundell, 2009, pp. ...