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Gloucestershire Business News

Stagnating wages 'costing UK workers £11,000 a year'

British workers are £11,000 worse off per year after 15 years of wage stagnation, according to new research.

The figures from the Resolution Foundation think tank, shared with BBC Panorama, found typical UK household incomes have fallen further behind those in Germany. In 2008, the gap was over £500 a year, now it is £4,000.

The Treasury says the UK economy is more resilient than many predicted.

In his Budget speech last week, Chancellor Jeremy Hunt acknowledged there is still enormous pressure on people's finances.

In recent months, wages have failed to keep up with rising costs, meaning that millions of Britons have, in effect, had a pay cut.

But experts have told Panorama that problems with incomes go much further back.

The Resolution Foundation calculated that had wages continued to grow as they were before the financial crash of 2008, the average worker would make £11,000 more per year than they do now, taking rising prices into account.

Two-thirds of them think the economy is going to get worse in the coming year, according to Ipsos polling of more than 6,000 adults.

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