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."