A report released Monday by the Institute for Fiscal Studies (IFS) says the government has "cushioned" Britons from the adverse effects of the recession, according to the Daily Express.

The report warned that household incomes will suffer more and more "as the Treasury unfolds its deficit-busting package of austerity measures", including 80 billion pounds (around $126 billion) of spending cuts.

Robert Joyce, IFS research economist, said: "The downturn may seem like old news. But, as in other developed countries, the consequences of the recession on British living standards have only just begun to be felt, and will continue to be felt for years to come."