Millions of families will be put under severe strain by the worst economic crisis since the 1970s, one of Britain's most powerful bankers warned yesterday.
Charles Bean, deputy governor of the Bank of England, said families are facing 'difficult social issues'.
He didn't spell out what these will be but they are likely to include bankruptcies, home repossessions and a widespread struggle to pay rising household bills.
Financial problems can have a devastating knock-on impact on families, leading to higher divorce and suicide rates and emotional turmoil for children.
'It's going to be a tricky period,' he said. 'Household real income is very low. That will make it difficult for households and there are difficult social issues that will arise.'
One of the biggest problems is the combination of soaring inflation and poor pay rises, which is plunging many families into a financial black hole.
The consumer prices index measure of inflation has jumped to 4.4 per cent, more than double the Government's target of 2 per cent.
