Pay worth less than in 2008 in large parts of the UK – TUC

The average worker would be £200 a week better off if wages had grown at levels seen before the 2008 global financial crisis, research suggests.

A study by the TUC found that pay packets are worth less than in 2008 in almost two-thirds of the UK. The analysis of official statistics showed that 16 years on from the financial crisis, wages will be lower in real terms in 212 out of 340 local authority areas this year.

The union body described the findings as a “damning indictment” of the Conservatives’ economic record, adding that millions of UK workers are enduring the longest pay squeeze in more than 200 years.

The TUC estimated that the average UK worker would be £10,400 a year better off if real wages had grown at their precrisis trend – the equivalent of £200 a week.

TUC general secretary Paul Nowak said: “Hard work should pay for everyone, but people are still worse off than in 2008 across the vast majority of Britain, and in every corner of the UK pay growth is way below historic trends. This is a damning indictment of the Conservatives’ economic record. This is the same Government that’s given us the most dramatic fall in living standards on record.

“The Tories’ failure to grow the economy, and their scorchedearth austerity policies, has decimated family budgets. Just imagine how much better off people would be if they had an extra £10,400 in their pay packets each year and how much more prosperous the country would be.

“We can create a new era of decent pay growth again where families’ living standards rise rather than falling backwards.

“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.”

A Treasury spokesperson said: “A global surge in inflation caused by Putin’s war in Ukraine has hit the value of wages right across the world. Despite these challenging international factors, since 2010, this Government has made huge strides in ending low pay, with jumps in the value of the National Living Wage meaning the number of people in jobs classified as ‘low paid’ has halved.

“Additionally, as part of our determination to end low pay, this month we increased the National Living Wage for workers aged 21 and over, putting more money in the pockets of almost three million workers. Through supporting the Bank of England and sticking to our plan, inflation is now down to 3.2% and real wages are growing.”