£7,000 wage grab

The share of economic output going towards wages has been falling, leaving us all worse off, according to a TUC report.

An average full-time worker currently earns around £26,000. But if wages had grown in line with economic growth over the last 30 years, and if the gap between those at the top and the rest had not increased, the average worker would be on £7,000 more a year.

It’s not only unfair, argued TUC general secretary Brendan Barber, but holds back growth. The TUC sees this wage squeeze as a prime cause of the economic crash that led to recession.

“Excess profits and bonuses went into the finance system rather than new investment. Workers deprived of proper pay borrowed to make up the difference. And when bankers stopped considering risk before lending, we started the inevitable slide to the global crash,” he said.