Five questions answered on longest real wages drop for 50 years

How long have real wages been dropping?

Figures from the Office for National Statistic (ONS) reveal real wages have experienced the longest consecutive drop for 50 years. We answer five questions on the drop in real wages.

How long have real wages been dropping?

They’ve been dropping consistently since 2010, which is the longest period of consecutive depletion since 1964, according to official figures. Overall, real wages have fallen by 2.2 per cent annually since the first three months of 2010.

How are real wages calculated?

Real wages are essentially wages that have been adjusted to factor in the cost of living or with inflation taken into account.

Why are real wages falling?

ONS said reduced output and shorter working hours were to blame. For example, many employees were asked to work shorter hours during the financial crisis rather than making them redundant.

The response to the fall in productivity in 2008 and 2009 was the main reason behind the fall in real wages, it added. It also highlighted the different inflation rate that exists between what is produced and what is consumed.

Are real time wages set to recover soon?

ONS said most recent figures, those released in the third quarter of 2013, showed real wages fell by a drop of 1.5 per cent compared with the same period a year earlier; showing that wages are still continuing to fall.

The Institute for Fiscal Studies produced a report on Thursday which also painted a strained picture. It suggested a mid-range household's income between 2013 and 2014 was 6 per cent below its pre-crisis peak. It added that real wages would not recover before the next general election.

What have the experts said?

"Over the last four years British workers have suffered an unprecedented real wage squeeze," said TUC General Secretary Frances O'Grady told the BBC.

"Even more worryingly, average pay rises have got 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.

"A return to business as usual may only bring modest pay growth. We need radical economic reform to give hard-working people the pay rises they deserve."

For most people in Britain, wages have been dropping. Photograph: Getty Images.

Heidi Vella is a features writer for Nridigital.com

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Will Jeremy Corbyn stand down if Labour loses the general election?

Defeat at the polls might not be the end of Corbyn’s leadership.

The latest polls suggest that Labour is headed for heavy defeat in the June general election. Usually a general election loss would be the trigger for a leader to quit: Michael Foot, Gordon Brown and Ed Miliband all stood down after their first defeat, although Neil Kinnock saw out two losses before resigning in 1992.

It’s possible, if unlikely, that Corbyn could become prime minister. If that prospect doesn’t materialise, however, the question is: will Corbyn follow the majority of his predecessors and resign, or will he hang on in office?

Will Corbyn stand down? The rules

There is no formal process for the parliamentary Labour party to oust its leader, as it discovered in the 2016 leadership challenge. Even after a majority of his MPs had voted no confidence in him, Corbyn stayed on, ultimately winning his second leadership contest after it was decided that the current leader should be automatically included on the ballot.

This year’s conference will vote on to reform the leadership selection process that would make it easier for a left-wing candidate to get on the ballot (nicknamed the “McDonnell amendment” by centrists): Corbyn could be waiting for this motion to pass before he resigns.

Will Corbyn stand down? The membership

Corbyn’s support in the membership is still strong. Without an equally compelling candidate to put before the party, Corbyn’s opponents in the PLP are unlikely to initiate another leadership battle they’re likely to lose.

That said, a general election loss could change that. Polling from March suggests that half of Labour members wanted Corbyn to stand down either immediately or before the general election.

Will Corbyn stand down? The rumours

Sources close to Corbyn have said that he might not stand down, even if he leads Labour to a crushing defeat this June. They mention Kinnock’s survival after the 1987 general election as a precedent (although at the 1987 election, Labour did gain seats).

Will Corbyn stand down? The verdict

Given his struggles to manage his own MPs and the example of other leaders, it would be remarkable if Corbyn did not stand down should Labour lose the general election. However, staying on after a vote of no-confidence in 2016 was also remarkable, and the mooted changes to the leadership election process give him a reason to hold on until September in order to secure a left-wing succession.

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