Bleak outlook for UK’s lowpaid: report

LONDON: The wages of 10 million lowpaid workers have stalled for two decades and will face pressure for a decade to come, according to a bleak assessment of Britain’s future jobs market.

Global economic competition, automation, the shift to the gig economy and a widening regional divide will place further pressure on the incomes of those earning between £10,000 and £15,000, it warns.

The analysis by the Centre for Social Justice, which is on the political right and chaired by former Tory leader Iain Duncan Smith, also blamed a failure to boost skills and education.

It will be seen as another warning to Theresa May from Conservative figures to kickstart her domestic agenda. There have been concerns within the party that the focus on Brexit has led to inaction in other crucial areas that could hold Britain back after its exit from the European Union.

The analysis concludes that wages of the lowestpaid stalled long before the 2008 financial crash. It warns that evidence shows that most never escape a life on low pay. The centre’s support for action on low pay shows it is now an issue across the political spectrum.

The report says 20% of Britain’s 33 million workers earn £15,000 a year or less, and 50% earn no more than £23,200. Only 10% of employees earn above £53,000 a year.

It argues that the UK should prepare for automation by stripping back taxes and regulation. ‘‘The biggest opportunity for the UK is to unleash the potential of the private sector, particularly small and mediumsized firms, helped by lower regulations and taxes,’’ it states.

It warns of the reliance of the UK economy on the financial sector, Britain’s continuing budget deficit and the regional imbalances between London and the rest of the country, and urges a skills overhaul to deal with the coming pressures.