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Report: Pay falls £52bn in five years

The UK's pay packet was £52 billion smaller last year compared to the eve of the recession in 2007, with some regions suffering 10% losses, a study has found.

The TUC have sais that Britain's shrinking wages are hitting people's living standards, holding back businesses and damaging growth prospects.

Hard workers have suffered 'a massive hit' in their pay packets, the TUC have said. Credit: PA

Billions of pounds are being lost from local economies because of job losses and cuts in wages, according to the TUC study.

The union organisation said a fall in the real value of wages, reduced hours and changes in employment, such as more part-time working, had caused the reduction.

The North West has been hit by the biggest cut in pay between 2007 and last year - a fall of over 10% - followed by the South West, West Midlands and Scotland, said the report.

A modest increase in employment had failed to offset a "sharp" cut in wages in recent years, said the TUC.

General secretary Frances O'Grady said: "It's no wonder businesses are struggling when so much demand has been sucked out of the economy. Britain desperately needs a pay rise."

Row over '20 per cent rise' in working age benefits

The row over welfare cuts hit a new low as the Tories and Labour traded figures ahead of a Commons vote on plans to impose a real-terms benefits cut.

Iain Duncan Smith, Work and Pensions Secretary, said the numbers showed "many working-age benefits" had risen by 20 per cent since 2007, outstripping a 12 per cent rise in private sector pay.

In defending the squeeze announced by Chancellor George Osborne last month, he said the increases cost the taxpayer £6.3 billion.

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Why police are threatening industrial action

  • Police Chiefs are threatening "work to rule" in protest against coalitions plan to curb pay and pensions.
  • Derek Barnett will raise the prospect of nationwide campaign of non-cooperation unless ministers back-track on cuts to police pay and funding.
  • He says a breakdown in relations will lead to withdrawl of voluntary services with hundreds of millions of pounds.
  • Winsor review could see another 8% cut from pay packets.

Police threaten 'work to rule' in pay and pensions row

The Police Superintendents Association of England and Wales claim members could refuse to work overtime without pay, reports The Telegraph.

Police
Unions will hold their annual conference this week Credit: PA Wire

Chief Superintendent Derek Barnett, the associations president, will tell the unions annual conference this week that senior officers should consider a nationwide campaign of non-co-operation unless ministers backtrack on cuts to police pay and funding.

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