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Wage fall 'has no precedent'
Stats show most sustained drop for 50 years

British workers have suffered an "unprecedented" fall in real-term wages over the last four years, new figures published yesterday have shown.

A study by the Office for National Statistics (ONS) found that real wages have fallen consistently since 2010 - the longest period for 50 years.

In particular low productivity growth seemed to be pushing wages down, the ONS said.

The study followed a report by the Institute for Fiscal Studies (IFS) which said that while the fall in household incomes has now probably come to a halt, living standards are still "dramatically" lower than they were before the global financial crisis hit in 2008.

Real wage growth averaged 2.9 per cent in the 1970s and 1980s, 1.5 per cent in the 1990s, 1.2 per cent in 2000s, but has fallen to minus 2.2 per cent since the first quarter of 2010, the ONS figures showed.

TUC general secretary Frances O'Grady said: "Over the last four years British workers have suffered an unprecedented real wage squeeze.

"Worryingly, average pay rises have been getter weaker in every decade since the 1980s, despite increases in productivity, growth and profits. Unless things change, the 2010s could be the first ever decade of falling wages."

She called for "radical economic reform to give hard-working people the pay rises they deserve."

The ONS findings directly contradict claims by the government last week that most British workers have seen their take-home pay rise in real terms in the past year.

Shadow chief secretary to the Treasury Chris Leslie said: "The Tories are so out of touch they deny there's a cost-of-living crisis, but these figures show the biggest fall in real wages since records began 50 years ago."

Unite union general secretary Len McCluskey said: "The bald truth is that the cost of living in this country is vastly outstripping wages. David Cameron has presided over horrific price rises in essentials like food, fuel and travel but he's done nothing to alleviate this pain.

"Last week the government used highly selective figures to try to spin the nation and claim that average pay is rising. Today's report is damning proof that the government was trying to pull the wool over our eyes."

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