Real wages still suffering from “Tory hangover”, says TUC

• Real wages just 2% higher than 2008 levels.
• Living standards still need to recover from 14 years of Tory government which saw average real annual pay growth of just 0.3%
• Employees would be £217 per week better off – or £11,300 a year – if wages would have risen according to pre-financial crash (2008) levels.
• Real median pay has grown by 1.3% over the past year. Low-income workers have seen a higher rise in their real pay (2.6%) across this period thanks to the increase in the minimum wage.
• Gender pay gap decreased among all employees to 12.8% in April 2025, down from 13.1% in April 2024 – but on current progress, gender pay parity would take 31 years to achieve.

Commenting on the latest ASHE data out today (Thursday), which shows real wages are still suffering from Conservative hangover and just 2% above 2008 levels, TUC General Secretary Paul Nowak said: 

“Working people are still paying the price from the hangover of Tory pay stagnation.

“Labour was straight out of the blocks boosting the pay packets of millions of the lowest paid workers with an increase in the minimum wage. That was the right thing to do. 

“And the Make Work Pay agenda will be vital in improving workers’ wages over the years ahead.

“But households need more support now. That's why living standards must remain a priority at the Budget, starting with action on energy bills.”

On the gender pay gap, which on current rates of progress would take 31 years to close,   Paul added:

“It’s welcome that we are seeing progress on closing the gender pay gap – but that progress is still too slow. 

“At the current rate of change, women would have to wait 31 years for pay parity. We must do better.

“The Employment Rights Bill can help to close the gender pay gap by banning exploitative zero-hours contracts which hit women hardest, and making sure all workers have a right to a guaranteed hours contract. 

“And the government is set to make employers publish action plans for tackling the gender pay gap. It’s crucial that these plans are bold and robust to ensure they make a real difference to working women’s pay and progress.”

ENDS