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Wages have fallen in real terms since downturn

Wages in the UK have fallen 5.5 per cent since mid-2010, adjusted for inflation, according to new figures.

The statistics, which were requested by the Labour Party and collated by the House of Commons library, show average hourly wages have decreased during the economic downturn.

In response to the figures, a Treasury spokesman said there are signs of recovery that would eventually raise living standards across the board in the UK.

'The economy is on the mend, but we've still got a long way to go as we move from rescue to recovery and we appreciate that times are still tough for families,' he said. 'We are on the right track, the deficit is down by a third, over one and a quarter million new private sector jobs have been created, and interest rates are at near-record lows, benefiting families and businesses.'

The Labour Party says hourly pay for private-sector workers in 2009 was just over £15.10 and dropped to about £13.60 in 2010. It says that since 2010 wages have fallen in real terms in every region and nation of the UK, with Yorkshire & the Humber, Wales, the North West and the South West seeing the biggest percentage falls.

Acas works with employers to develop fair and effective pay systems and incentive schemes. Acas can visit your organisation to help you understand what needs to be done to address issues related to pay. Further information is available at Pay and reward: how Acas can help including guidance on how Acas can work with you to develop practical solutions.

Visit the Acas Training Courses, Workshops and Projects page for more information.

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