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UK households feel the squeeze on their finances

21 March 2011 Last updated at 14:17 GMT

In the past three years, British families have seen the worst squeeze on their finances since the early 1980s, according to research for the BBC.

The average household has seen its real-terms income fall by £365 since 2008.

Pensioners and the richest households have been hit the hardest, as the BBC's Stephanie Flanders reports.