‘Real terms wages less than before the 2008 crash’

Wages are worth less than they were before the 2008 financial crash in many parts of the UK, according to new analysis by the TUC.

Folder with label saying 'salaries'

 

Pay packets are worth less than in 2008 in nearly two-thirds (63%) of UK local authorities, according to new TUC analysis.

The analysis of official statistics shows that 16 years on from the global financial crisis, wages are set to be lower – in real terms – in 212 out of 340 UK local authorities in 2024. The TUC adds that, in every UK local authority, real wages are far below where they would be if they had grown at the pre-2008 growth rate, with London having the highest share of real wage blackspots.

However, even in lower-paid regions of the UK like the North East – where incomes of those on the very lowest pay have been pushed up by the minimum wage – real wages are still lower than in 2008 in half (50%) of local authorities.

The TUC estimates that the average UK worker would be £10,400 a year better off if real wages had grown at their pre-crisis trend – the equivalent of £200 a week. Before the financial crash UK real weekly wages grew on average by 1.7% each year. Since 2008, average annual growth has been –0.2%.

TUC General Secretary Paul Nowak said: “The Tories failure to grow the economy – and their scorched-earth austerity policies – has decimated family budgets…It doesn’t have to be this way. We can create a new era of decent pay growth again where families’ living standards rise rather than falling backwards.

“But we need a new approach to get there. That means a proper plan to get the economy growing again by investing in UK industry, and a New Deal so that working people get a fair share of the wealth they create.”

 



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