New figures show cost of living crisis deepens

New official figures published today (Thursday) by the Office for National Statistics show that the real value of the average full-time wage fell by more than £200 over the last year – and by nearly £2,000 (£1,967) since 2010.

The Annual Survey of Hours and Earnings shows that the real value of the average full-time wage fell by 0.8 per cent between 2012 and 2013, and by 6.8 per cent since 2010.

The biggest cash fall was in London with a fall of £2,825 in the real value of the average full-time wage since 2010 and 2013 (£663 in the last year), and the biggest percentage fall was in the South East with a 7.8 per cent fall since 2010 (2.1 per cent in the last year).

TUC General Secretary Frances O’Grady said: “This is what a cost of living crisis looks like, not a recovery. And with people on low to medium wages spending more on basics like energy, fuel and housing, the crisis is even worse for ordinary people.

“When the government claims that living standards are rising – or that ministers are riding to the rescue by claiming they will take £50 off energy bills – we need to tell them loud and clear that people need £2,000 just to catch up with what they have lost since this government came to power, let alone from the start of the recession. Britain most definitely needs a pay rise.”

NOTES TO EDITORS:

Real terms annual median pay losses by region (cash change)

Source: ASHE, all figures adjusted by RPI

Real terms annual median pay losses by region (percentage change)

Source: ASHE, all figures adjusted by RPI

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