15 Jan

2013

Finance

Real wages fall could cost average worker £6,000

Posted by on 15 Jan 2013

The average worker could lose around £6,000 by 2014 as a result of the real wage fall, according to analysis by TUC.

As wages fail to keep pace with inflation, the TUC calculate that someone on a median salary of around £25,000 has already lost nearly £4,000 since December 2009.

The Office for Budget Responsibility has put back estimates for when growth will return to real wages to 2014.

The TUC say government caps on benefits and tax credits will further depress growth. General secretary Frances O’Grady said: “The average worker has already lost £4,000 and could lose another £2,000 this year. This massive squeeze on earnings, combined with sharp cuts to vital welfare benefits and tax credits, is hurting millions of people with food, transport and energy bills taking up an even larger share of family budgets.

“We urgently need decent wage rises, which will feed through into more consumer spending and wider economic growth. But with the government still committed to self-defeating austerity, the prospect of a return to healthy pay rises is looking further and further away.”

Late last year, the ONS released data that showed rising wage inequality between the country’s top and bottom earners.

Read more in these areas:

#National #economy #employment #finance
Sponsored Content
Are Your Staff Suffering From Brexit Blues?

In theory around 50% of your workforce should be ecstatic…

Behind the business with Jilrose

Bdaily goes behind the business with John Shaw, Managing Director of IT…

NELEP Survey: Have your say in shaping the region’s economic future

In March 2014, the North East Local Enterprise Partnership unveiled…

Chartered Manager Degree Apprenticeships: The new programme providing big business with future leaders

Sheffield Hallam University is helping to shape the future leadership…

Sponsor your content →