“Is this now officially the worst UK government since records began?” Mike O’Brien has asked today after the Office for National Statistics published figures showing the take home pay of people in the UK has seen its longest sustained fall since records began.
Wages have fallen by 2.2% since 2010 and this marks the longest period since detailed records began in 1964.
Other ONS figures showed that real wages in the UK fell by the biggest decline at any of the seven leading industrial nations.
The ONS pointed to falling working hours, falling productivity, increases in non-wage costs and changes in the workforce composition have all been “relevant factors” to the fall in Brits’ take-home pay. It is believed that the VAT rise from 17.5% to 20% was also a factor.
“The people of North Warwickshire and Bedworth do not need a statistician to tell them that there’s a cost-of-living crisis. People feel it in their pockets. The government may deny it, but rising energy bills, VAT rises and three years of a flat lining economy makes this the worst record on wages since records began 50 years ago.
“After the World Banking Crisis hit in 2008, the economy fell but was well into recovery by the first six months of 2010. It began to stall after the coalition said it would cut its spending. Business then cut its investment, confidence evaporated for three years and is only now recovering. Other governments like Obama in the US and Merkel in Germany did not make these cuts and their economies recovered more quickly. It is estimated that families have lost £1,600 since May 2010. Even if the economy does recover no one expects wages to return to pre 2010 levels by May 2015 which means that people will end up poorer under this government.”