New economic forecasts published for today’s (Monday) Budget by the Office for Budget Responsibility show that UK wages are not expected to return to their pre- financial crisis peak until at least 2024.
This would mean UK workers waiting a total of 16 years from the financial crisis in 2008 until their pay is fully recovered – the longest wage slump in 200 years.
TUC General Secretary Frances O’Grady said:
“This government has abandoned working people, who are still worse off than a decade ago. Their priority is giving tax breaks to big business and the wealthy.
“It’s time for a change for working people and their families. We need a plan to improve jobs and wages. That means putting the minimum wage up to £10 per hour now. And it means giving unions the freedom to enter every workplace and negotiate fair pay rises.”
- Forecast for UK wages: using CPI and average earnings figures from the Office for Budget Responsibility in Economic and Fiscal Outlook – October 2018 (summary table 1.1)
- The chart shows wages peaking at £545 a week in 2008 and forecast to reach £542 in 2023 (both figures are adjusted for inflation to 2018 prices).
- The Trades Union Congress (TUC) exists to make the working world a better place for everyone. We bring together more than 5.5 million working people who make up our 49 member unions. We support unions to grow and thrive, and we stand up for everyone who works for a living.