politics

Workers left £1,000-a-year worse off after a decade of Tory rule, research reveals


Yorkshire, the North East and the East of England have been disproportionately hit by the squeeze on pay

Rishi Sunak and Boris Johnson. The Government says workers are “taking home” more cash than in 2010 but a study shows pay is worth less in today’s economy.

A decade of Tory rule has left workers on average £1,000-a-year worse off, according to a study of wage data.

An analysis of the Office for National Statistics log shows that, when inflation is taken into account, the average wage is worth less in 2021 than it was in 2010.

Labour says that the average weekly wage should be £609.40. The actual figure is £589.70, a pay cut of £20 per week or £1,040 per year.

It comes as Chancellor Rishi Sunak prepares to slash the £20-a-week uplift to Universal Credit, which was brought in during the Covid pandemic to support families.

Deputy Labour Leader Angela Rayner said that since 2010 wages have fallen by 3.45% on average.

Some parts of the country have been hit harder, however, with workers in almost three quarters of communities in Yorkshire, the North East, the East of England and the South East seeing their wages fall since the Tories came into power.

The Government defended the attack by saying those earning the National Living Wage – which pays £8.91 though the Real Living Wage Foundation has calculated the figure should be £9.50 – is “taking home” than in 2010.

Labour is calling for an immediate increase in the minimum wage to at least £10 an hour.







How different regions of the country have been hit harder by wage decline



“This government has totally failed working people. In-work poverty is at record levels and millions of working people are struggling to make ends meet whilst mates of Ministers and Conservative donors are given billions of pounds of taxpayers’ money,” said Ms Rayner, Shadow Secretary of State for the Future of Work.

“Everyone should earn a fair day’s wage for a fair day’s pay and earn enough to raise a family and live a decent, secure and fulfilling life. It is a sign of a broken economic model under the Conservatives that people working full-time or even multiple jobs are not able to make ends meet and millions of children are growing up in poverty in working families.








Deputy Labour leader Angela Rayner
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Image:

PA)



“It’s time to make our economy work for working people. Labour would immediately raise the minimum wage to at least £10 an hour and give workers more power in discussions about pay and benefits by supporting people to negotiate pay rises collectively with all workers in their sector so they can get the fair pay that they deserve.”

A government spokesperson said: “Today, someone working full time on the National Living Wage will be taking home £5,400 more annually than they were in 2010.

“We have also committed to increase the National Living Wage to reach two thirds of average earnings by 2024, and plan to allow up to 1.8 million low-paid workers to pick up extra work if they want to by cracking down on restrictive employment contracts.”









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