BBC News – Panorama – Take-home pay down 5% in real terms since 2009, says study.
The average employee takes home £1,088 a year less than two years ago when the sum is adjusted for inflation, research commissioned by BBC Panorama suggests.
The sharp drop, in real terms, highlights the effect of stagnant wages and above-target inflation on incomes.
The average British worker earned £20,149 at the start of 2011 – a real terms fall of 5% from what they were earning in the middle of the recession.
The research was based on actual salaries paid into bank accounts.
It was carried out by the Centre for Economics and Business Studies and based on data on salaries from the payment processor, Vocalink, which looks after more than 90% of deposits into employees’ bank accounts.
It was commissioned by Panorama to work out how much worse off employees have become since wages hit their peak.
Job fears
When inflation is taken into account, average pay has dropped from the start of 2009 – when the recession was in full swing.
The research shows that if you allow for inflation, the average take-home pay is lower today than it was in 2004.
