The IFS analysis of the spring statement published today (Thursday) shows that since taking office in 2010 the Conservatives have presided over an unprecedent period in which real pay has fallen. Their analysis shows:

• This year’s near 3% decline in real pay eclipses any annual change in the wake of financial crisis and is the steepest on record except a one-off in the late 1970s.
• Since 2008 to 2022 real pay has fallen in 7 of 15 years; in the 46 years between 1962 and 2008, real pay fell only once.
• Had pay kept pace with prior trends (over 1990-2008), average annual pay would be £11,000 higher.
• Public sector workers real pay is down 2.1% compared to 2010.

TUC General Secretary Frances O’Grady said:

“The IFS analysis shows that the Conservatives are the party of pay cuts.

“They have imposed real pay cuts on millions of workers year after year. Their famous ‘long-term economic plan’ led to pay falling across the economy. And this year, working people will suffer an average real pay cut of more than £500.

“Working people are desperate for a plan to get pay rising at the heart of UK economic policy.”