Toggle high contrast
Issue date

embargo: 00.01hrs Friday 22 January 2016

Average pay (median) in the East Midlands is still worth £2,512 less in real terms than it was in 2008 – a shortfall of £48 a week – according to new analysis published by the TUC today (Friday).

The figures confirm that the East Midlands was the only region in the UK to experience a fall in real earnings over the period of 2014 to 2015.

The average annual wage in the East Midlands fell by £83 in real terms from 2014 to 2015, which differs significantly from an average increase of £435 across the UK as a whole.

The TUC says the analysis shows how far workers in the region have to go to restore all the earnings they lost following the longest squeeze on wages since records began in the 1850s.

While real wages are increasing in other parts of the UK, current indications suggest that this recovery may already be stalling. Monthly data on average weekly earnings from the Office for National Statistics show that wage growth slowed in the second half of 2015.

The TUC warns that the government’s plans to continue to hold back wages in the public sector will be a significant drag on average wage growth. And recent monthly surveys by the employment information service XpertHR suggest that private sector wage settlements remain well below their pre-crisis trend.

The TUC says that while forthcoming increases to the minimum wage have an important role to play in improving wages for some workers, this is not enough. Concerted action from the government is needed to support stronger wage increases for all low and middle-income workers, not just those at the very bottom.

However, the TUC warns that the government’s Trade Union Bill will weaken the power of workers to negotiate a fair share of economic growth through decent pay rises. This could lead to slower wage growth becoming embedded as a longer-term problem, causing trouble not only for workers and their families, but also for businesses that rely on their spending.

Instead of attacking workers and their representatives, the TUC is calling on the government to engage with trade unions on a positive agenda to improve both pay and productivity. This should include stronger collective bargaining rights, modern wage councils to ensure that pay increases follow productivity gains, and worker representation on remuneration committees to bring back a bit of reality to boardroom pay.

TUC Regional Secretary Lee Barron said: “Working people deserve a fair share of the wealth they create. But despite five years of economic growth, the pressure on their living standards has barely let up. Real wages fell in the East Midlands last year, leaving average pay more than £2,500 below its 2008 level.

“The government must do the right thing for the economy, and the right thing by workers. They should invest more in the skills and infrastructure the UK needs for higher productivity. They should make sure that working people see productivity gains in their pay packets. And they should work positively with trade unions instead of attacking workers and their representatives with the Trade Union Bill.”

NOTES TO EDITORS:

Changes in the median annual real earnings, all employees, selected years 2008-2015

UK nation / region

Change 2008 to 2015 (£)

Change 2008 to 2015 (%)

Change 2014 to 2015 (£)

Change 2014 to 2015 (%)

North East

-£1,049

-4.8%

£561

2.8%

North West

-£2,468

-10.5%

£374

1.8%

Yorks & Humber

-£2,446

-10.6%

£329

1.6%

East Midlands

-£2,512

-10.9%

-£83

-0.4%

West Midlands

-£1,981

-8.5%

£908

4.5%

East

-£2,519

-10.4%

£31

0.1%

London

-£4,415

-12.5%

£516

1.7%

South East

-£2,512

-9.6%

£616

2.7%

South West

-£2,348

-10.2%

£663

3.3%

Wales

-£1,291

-6.0%

£507

2.6%

Scotland

-£1,519

-6.3%

£770

3.5%

Northern Ireland

-£1,382

-6.4%

£777

4.0%

UK

-£2,270

-9.2%

£435

2.0%

Median annual real earnings, all employees, selected years 2008-2015

UK nation / region

2008

2010

2014

2015

North East

£21,867

£21,476

£20,257

£20,818

North West

£23,519

£22,277

£20,677

£21,051

Yorks & Humber

£23,057

£22,141

£20,282

£20,611

East Midlands

£22,973

£22,439

£20,544

£20,461

West Midlands

£23,176

£22,020

£20,287

£21,195

East

£24,219

£23,068

£21,669

£21,700

London

£35,236

£33,599

£30,305

£30,821

South East

£26,295

£25,007

£23,167

£23,783

South West

£23,102

£22,234

£20,091

£20,754

Wales

£21,628

£21,377

£19,830

£20,337

Scotland

£23,986

£23,287

£21,697

£22,467

Northern Ireland

£21,629

£20,322

£19,470

£20,247

UK

£24,757

£23,775

£22,052

£22,487

Source: Annual Survey of Hours and Earnings, Office for National Statistics. (CPI adjusted. All real values are reported are in April 2015 prices, using April CPI: All Items Index values.)

- All TUC press releases can be found at www.tuc.org.uk

- Follow the TUC on Twitter: @The_TUC and follow the TUC press team @tucnews

Contacts:

Media enquiries:
Lee Barron  T: 0121 236 4454  M: 07919 102472  E: lbarron@tuc.org.uk

Enable Two-Factor Authentication

To access the admin area, you will need to setup two-factor authentication (TFA).

Setup now