TUC General Secretary: "Britain needs a pay rise"

 

The TUC has warned that if the next government doesn’t act, UK wage growth will remain at the bottom of the league.

Counting from 2008 to 2018, the TUC’s analysis puts the UK at No. 30 in a table of 32 OECD countries, with wage growth sitting at -6.8% and outstripped only by Italy on -7.3% and Greece on -25.2%.

The table is topped by Poland with 24.5% wage growth, followed by the Slovak Republic on 20.4% and Sweden on 18.7%.

The table confirms that, conversely to most other advanced economies, UK workers will suffer a fall in real wages in both 2017 and ’18 of -0.5%.

Real wage growth across other countries will increase by an average of 2.6%.

The reduction by the end of 2018 means that real wages will be 6.8% lower than they were in 2007, before the financial crisis.

In their March forecast, the Office for Budgetary Responsibility show UK real wages rising over the same period by 0.6%, in contrast to the decline on the basis of the OECD forecast. The latest ONS real average weekly earnings figures for February 2017 show a -0.4% decline on the year (on the single month measure).

TUC General Secretary Frances O’Grady said: “British workers have endured the longest pay squeeze since Victorian times. And now even more pain is on the horizon.

“Britain badly needs a pay rise – and all the political parties must explain in their manifestos how they will boost living standards across the UK.

“A good start would be to scrap the unfair pay restrictions on public servants. It is disgraceful in the world’s sixth richest economy that nurses have to use food banks to get by.”

Tuesday, 16 May 2017

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