Average worker to lose £13 a week pay next year as fuel and grocery prices grow

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The research by shadow Chancellor Rachel Reeves debunks the myth Boris Johnson put about last week that Britain is seeing a “growth in wages after more than 10 years of flat-lining”

The average worker will lose £13 a week in earnings next year, according to Labour analysis.

The research by shadow Chancellor Rachel Reeves debunks the myth Boris Johnson put about last week that Britain is seeing a “growth in wages after more than 10 years of flat-lining”.

The loss in cash to pay bills is down to increased prices for goods including fuel and groceries which the PM ignored.

That will see average weekly earnings effectively drop from £547 last year to £534 in 2022 based on 2020 prices.

Ms Reeves said: “With growing disruption and prices rising, millions are to be left with less money in their pockets.”

And the real-terms wage cut comes on top of the £1,000 a year 3.2 million working families will lose after the PM scrapped the Universal Credit uplift on Wednesday.

Workers also face a jobs tax as National Insurance goes up in April plus council tax rises and a personal income allowance freeze.

Prices are 11.4% higher than they were in 2015 while average weekly earnings have only increased 7.4% over the same period.

Even the Office of National Statistics warned that current wage growth figures paint a false picture because of the “dramatic decline” in pay at the start of the pandemic.

Grant Fitzner of the ONS said: “It would clearly be misleading to use such large and distorted annual growth rates as an indicator of the health of the UK economy.”

Ms Reeves compared earnings forecasts with predictions for a rise in inflation to reach her verdict.

She added: “Instead of taking responsibility, Boris Johnson prefers to joke around and spin a fantasy about wages that leaves workers worse off and businesses frustrated.

“Labour would take action with a minimum wage of at least £10 and banning disgraceful practices like fire and rehire.”

Under the last Labour government wages grew by 4.25%. If the same trends had continued workers would be £100 a week better off.