Annual real term wages worth £2,270 less than in 2008

Despite 2014-2015 seeing the first real term wage increase for several years, with the average annual wage increasing in real terms by £435 per annum across most of the UK, the TUC says that UK workers are still £44 a week worse off now than they were before the economic crisis. 

 

There are also signs that the increases may not continue, with figures from the Office for National Statistics in December 2015 suggesting that the rate of growth seemed to be decreasing in the August-October period, in comparison to the first quarter of the year.

 

Slower wage growth may have a direct impact on the economy, as consumers spend less on the high street, or increase their borrowing on credit.

 

CEO of Debt Advice Foundation David Rodger said of the report;

 

“Whilst the recent upturn in real wages is very welcome news, we mustn't lose sight of the longer term decline in disposable incomes, which is impacting debtors' abilities to service existing liabilities whilst putting food on the table.”