Wages ‘worth third less than a decade ago’

WAGES are worth a third less than 10 years ago in parts of Britain, according to a report.

The research suggests the average worker has lost £11,800 in real earnings since 2008.

The UK has suffered the worst real wage slump among leading economies, said the TUC, which commissioned the report.

The biggest losses have been in areas such as the London borough of Redbridge, Epsom and Waverley in Surrey, Selby in North Yorkshire and Anglesey in North Wales, the study indicated.

Workers have suffered real wage losses ranging from just under £5,000 in the North-east to £14,400 in the South-west and more than £20,000 in London.

There have been sharp across Britain in both poorer affluent areas.

In three-quarters (307) of local authority areas, real wages are still lower than a decade ago.

Workers in Redbridge, East London, have the most ground to make up. They are earning 34 per cent less falls and in real terms than a decade ago – the equivalent of £181 a week.

TUC general secretary Frances O’Grady said: “The Government has failed to tackle Britain’s cost of living crisis.

“Millions of families will be worse off this Christmas than a decade ago.

“While pay packets have recovered in most leading economies, wage growth in the UK is stuck in the slow lane.

“Ministers need to wake up and get wages rising faster. This means cranking up the pressure on businesses to pay staff more, especially at a time when many companies are sitting on large profits.”

A Government spokesman said: “Employment is at a record high with more people in work in every region of the UK since 2010 and wages are now rising at their fastest in a decade.

“We’ve cut income tax for 31 million and, through the national living wage, helped to deliver the fastest wage growth in 20 years for more than two million of the lowest paid workers.”