Phantom Chancellor Rachel Reeves’ research debunks myth Boris Johnson raised last week that Britain is experiencing “wage growth after more than 10 years of stagnation”
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The average worker will lose £ 13 per week in earnings next year, according to Labor analysis.
Phantom Chancellor Rachel Reeves’ research debunks the myth Boris Johnson spoke of last week that Britain is experiencing “wage growth after more than 10 years of stagnation”.
The loss of money to pay bills is due to rising prices of goods, including fuel and groceries, which the Prime Minister ignored.
This will see the average weekly wage drop from £ 547 last year to £ 534 in 2022 based on 2020 prices.
Ms Reeves said: “With increasing disruption and rising prices, millions of people will be left with less money in their pockets.”
And the fall in wages in real terms comes on top of the £ 1,000 a year that 3.2 million working families will lose after the Prime Minister removed the increase in universal credit on Wednesday.
Workers also face an employment tax as national insurance increases in April, along with municipal tax increases and a freeze on personal income allowances.
Prices are 11.4% higher than in 2015, while average weekly earnings only increased 7.4% over the same period.
Daily Mirror / Andy Stenning)
Even the Office of National Statistics has warned that current wage growth figures give the wrong picture because of the “dramatic drop” in wages at the start of the pandemic.
Grant Fitzner of the ONS said: “It would be clearly misleading to use such high and distorted annual growth rates as an indicator of the health of the UK economy.
Ms Reeves compared the earnings forecast with the forecast for rising inflation to come to her verdict.
She added: “Instead of taking responsibility, Boris Johnson prefers to joke and make a fantasy about wages that worsens the plight of workers and frustrates businesses.
“Labor would take action with a minimum wage of at least £ 10 and ban shameful practices like fire and rehiring.”
Under the last Labor government, wages rose 4.25%. If the same trends had continued, workers would be better off by £ 100 a week.