How are real wages declining in the UK?
Real wages are adjusted for the level of inflation, indicating how much money an individual makes after the cost of living is taken into account.
According to the TUC research from December 2022, average real wages in Britain fell by 3% over the course of 2022, leading to an ever-widening gap between the rich and the poor.
This is the sharpest fall in real wages since 1977 and the second worst on record since 1945. On average, working people have lost around £75 a month in 2022 as a result of the falling real wages – with key workers hit hardest.
And more recently, a report by the Resolution Foundation and London School of Economics showed UK workers are missing out on over £10,000 a year, with UK living standards falling behind other G7 nations, as well as Australia and the Netherlands.
But this is not a new situation. Brexit and austerity cuts have just made it worse.
Analysis of OECD (Organisation for Economic Co-operation and Development) data by the House of Commons library has shown that Westminster has consistently delivered the highest percentage of low earners in north west Europe in every year since 2000.
These findings follow a pattern of the UK consistently underperforming in the 21st century against its north west European neighbours in wealth per head, inequality, pension poverty, and recovery.
The choice for Scotland is either continuing to let Westminster make decisions for it that see us lag behind our nearest neighbours, or take responsibility into our own hands with independence and move towards emulating our more successful neighbours.