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Saturday 20 September 2014

Biggest real wages fall in UK: TUC

Published 07/03/2013 | 00:21

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UK workers have seen the biggest fall in real wages than any other of the world's' top ten developed economies, claims the TUC

Workers in the UK have seen the biggest fall in real wages than anywhere in the world's top 10 developed economies, according to a new study.

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The TUC said that between 2007 and 2011 real wages fell by 4.5% in the UK, higher than in countries such as Italy and Japan, while in Australia and Canada there were increases of 6.9% and 5.4% respectively.

Most of the decline was in 2011 - the coalition Government's first full year in office, the research found.

The TUC said the Government's austerity programme had made the squeeze on living standards even tighter by cutting tax credits and welfare support for low and middle-income families.

TUC general secretary Frances O'Grady said: "While most countries have suffered periods of negative wage growth, no-one has witnessed such a marked decline as the UK.

"This Government's blind obedience to self-defeating austerity has ensured that we are leading the way when it comes to the squeeze on living standards.

"Businesses desperately need people to spend money but employees are cutting back as their wages are squeezed and the public sector, far from making up the gap, is being slashed too.

"Unless we get stronger economic growth with rising real wages, consumer spending will remain weak and the economy will continue to flat-line."

Shadow Treasury Minister Cathy Jamieson, said: "These shocking figures show that a flatlining economy under David Cameron and George Osborne has led to a sharp fall in living standards since 2010. We are losing in the global race with the biggest decline in real wages of any of the world's top ten economies.

"Urgent action is needed in this month's Budget to kick-start our stagnant economy and help people on middle and low incomes struggling with the rising cost of living. The top rate tax cut for millionaires should be cancelled and a new lower 10p starting rate of tax introduced to help millions on middle and modest incomes, and to boost growth we need to bring forward infrastructure investment, build thousands of affordable homes and give tax breaks to small firms taking on extra workers."

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