WIREDGOV

The IFS analysis of the spring statement published recently (Thursday) shows that since taking office in 2010 the Conservatives have presided over an unprecedented period in which real pay has fallen. Their analysis shows:

• This year’s near 3% decline in real pay eclipses any annual change in the wake of the financial crisis and is the steepest on record except a one-off in the late 1970s.
• From 2008 to 2022 real pay has fallen in 7 of 15 years; in the 46 years between 1962 and 2008, real pay fell only once.
• Had pay kept pace with prior trends (over 1990-2008), average annual pay would be thousands of pounds higher today, and the gap will reach £11,000 by 2027.
• Public sector workers' real pay is down 2.1% compared to 2010.

TUC General Secretary Frances O’Grady recently said:

"The IFS analysis shows that the Conservatives are the party of pay cuts.

“They have imposed real pay cuts on millions of workers year after year. Their famous ‘long-term economic plan’ led to pay falling across the economy. And this year, working people will suffer an average real pay cut of more than £500.

“Working people are desperate for a plan to get pay rising at the heart of UK economic policy.”

Editors Note’s

• IFS spring statement analysis: The full IFS analysis is here: https://ifs.org.uk/publications/16003
• The UK’s exceptional pay squeeze compared to other countries: Last week the TUC published research showing that the UK is one of just 7 out of 33 OECD countries where real wages have fallen between 2007 and 2020. Average wage in UK would be £76 per week higher if growth had kept pace with the OECD average since the financial crisis. Full details here: https://www.tuc.org.uk/news/uk-workers-miss-out-ps4000-pay-growth-compared-oecd-average-2007-tuc-analysis