Real wages of workers in the UK fall at a record rate

DNHN - Higher food and energy bills have been putting pressure on UK households. Meanwhile, the real wages of workers in the UK fell by 3% in the second quarter of this year.

Real wages for workers in the United Kingdom fell by 3% in the second quarter of this year, the steepest decline since figures were archived in 2001, according to the Office for National Statistics (ONS).

Real wages are the net income received, after taxes, benefits, and voluntary contributions, from an individual's salary.

According to the ONS, the cost of living is rising at an even faster and faster rate than wages.

Inflation rose to 9.4%, a 40-year high, prompting the Bank of England to raise interest rates six times since December and is expected to go even higher later this year.

Energy bills for millions of households could reach £5,000 ($6,000) next spring, according to estimates by research firm Auxilione.

“As real wages fall, the pressure on low-income families increases. This forces them to make decisions about where to cut spending,” said Joseph Rowntree Foundation, an anti-poverty charity said.

UK workers have called for a pay rise in recent months to control the debt squeeze. In June, thousands of railroad workers went on strike to demand that their wages rise in line with inflation, and further strikes are expected this week.

On August 16, thousands of British Airways check-in staff received an average 13 per cent pay rise after they threatened to go on strike.

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