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23 Nov 2015

UK employees earning less than they were over a decade ago

A new survey has revealed the shocking fact that the average employee in the UK is currently earning less than they were over ten years ago, The Independent reports.

According to an annual survey of hours and earnings in the UK, conducted by the Office of National Statistics, a typical worker now earns less in 2015 than they did in 2003.

It was found that this year, UK employees brought home on average £528 per week; and while this was up from the £518 earned per week last year, it is well below the £534 earned each week in 2003.

Explaining why people´s pay packets aren´t increasing was Charles Cotton, a pay and reward adviser at the Chartered Institute of Personnel and Development (CIPD). Cotton argues that the biggest obstacle facing today´s workforce is productivity.

“Until we see gains in productivity,” he told the publication, “people are unlikely to feel the benefit in their pay packets so businesses need to concentrate on better people management and better working practices to shift the dial on this.

On April 2016, the minimum hourly rate for workers over the age of 25 will increase from £6.70 to £7.20, increasing wages for more than half the nation´s employers. In order to counteract this additional cost, employers are likely to push for increased productivity from their workforce in return.

Despite wages beginning to creep up, however, the report shows that most people aren´t being paid much more than they were a decade ago.

Editor-in-chief at money.co.uk, Hannah Maundrell, also notes that the higher costs of living are making it difficult for households on low incomes to make ends meet. Therefore, although low inflation has helped with day-to-day budgeting to some degree, “as soon as prices start to creep back up we´ll all feel the squeeze once again,” Maundrell predicted.

Copyright M2 Bespoke 2015

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