Workers now £1,000 worse off
The UK's workers are more than £1,000 worse off than they were two years ago as their pay has failed to keep pace with rises in the cost of living, research indicated today.
The average employee has seen the value of their take-home pay dive by £1,088, or 5%, in real terms since the middle of the recession, according to the BBC1 programme Panorama.
The study found that average annual salaries were £20,419 after tax had been deducted, but once the impact of inflation was factored in, the buying power of pay packets was lower now than in 2004. Workers in the construction sector have been hit particularly hard, with the value of their pay falling by £1,188 a year in real terms since 2009.
The programme also found that the squeeze in people's living standards has been made worse by workers being too afraid to ask for a pay rise.
Panorama: The Big Squeeze is on BBC One tonight at 8.30pm.
Research was carried out for Panorama by the Centre for Economics and Business Research and the Institute of Social and Economic Research.
Worse off: sector by sector
Construction workers: £99 a month poorer off
Real estate and renting: £91 a month
Financial intermediaries: £101 a month
Transport, storage and communications workers: £62 a month
Productive industries (eg, oil,manufacturing): £48 a month
Public sector workers: £45 a month Wholesale, retail, hotels and restaurants: £41 a month