BRITAIN needs an “investment Budget” said the TUC today after official figures confirmed the Tories oversaw the worst pay growth for any period in the last 100 years.
Median weekly earnings for full-time employees rose by 2.9 per cent in real terms in the year ending in April, Office for National Statistics (ONS) found.
The lower-paid occupations saw the largest increases: the ONS said this can be partly attributed to recent increases in the national minimum wage and national living wage rates.
TUC analysis by the union federation shows the real average annual wage growth was just 0.3 per cent from 2010 to 2024, meaning pay growth under the period’s Conservative-led governments was worse than for any other period of government since the 1920s.
As expected today Chancellor Rachel Reeves announced the national minimum wage will rise by 6.7 per cent in April, bringing it up to £12.21.
The move was welcomed by Unison assistant general secretary Jon Richards, who said: “This much-needed boost will see millions of workers struggling a little less from next spring. With more in pay slips, hard-earned cash will go further, easing the pressure on stretched household finances.”
TUC general secretary Paul Nowak said Britain needs “a new approach” to the Tories’ wage stagnation.
“The government’s Employment Rights Bill will help to give more workers fair pay, job security, and dignity at work,” he said. “We also need an investment Budget to create a new era of growth with rising wages and higher living standards.”
ONS data showed the gender pay gap reduced slightly from 7.5 per cent to 7 per cent over the past year: men had full-time median earnings, excluding overtime, of £19.24 an hour, compared with £17.88 for women. It means the average British female worker earns 93 per cent of what the average man earns each year.
Among all employees, the gender pay gap dropped to 13.1 per cent in April 2024, down from 14.2 per cent in April 2023. This gap is wider due to the larger proportion of women working part-time.
Mr Nowak said: “The gender pay gap is closing at a snail’s pace. At this rate it will still take 16 years to close. We need bolder action so that we don’t consign another generation of women to pay inequality.
“We desperately need more flexible, affordable and accessible childcare for all families that works around shifts, weekend work and irregular working patterns.”
