Had this level of growth continued, the typical family income today would be £51,000, rather than its actual level of £31,000 on average. Ruth Curtice, chief executive of the Resolution Foundation, said the scale of the living standards slowdown across Britain “has cost the typical family an astonishing £20,000 a year”. “As we look ahead, the task of raising living standards across Britain is bigger than ever – we simply cannot afford any more stagnation,” she added. 1) Set up a Direct Debit to use your £20,000 tax-free ISA allowanceThe £20,000 ISA allowance is a use it or lose it allowance. This is because by reducing your gross salary, it reduces the amount of income tax a worker must pay and the National Insurance contributions for both the employee and employer.