Young people have been hit the hardest by the recession, according to a report by the Institute of Fiscal Studies (IFS).

According to the paper, household income for people aged 22-30 fell by 13% between 2007 and 2013, whilst people aged between 31 and 59 saw a 7% drop.

Employment rates were similarly hit, falling 4% for 22-30 year olds whist employment rates for those between 31 and 59 remained stable.

"Pay, employment and incomes have all been hit hardest for those in their 20s," said Jonathan Cribb, research economist at the IFS.

"A crucial question is whether this difficult start will do lasting damage to their employment and earnings prospects."