16 March 2017

The latest figures from the Office for National statistics show that pay growth has slowed compared with last year.

Average wages increased by 2.3% and total pay increased by 2.2% in the three months leading to January 2017 compared with the three months leading to January 2016. This shows a slowing of growth from 2.6% on both average pay and total pay in the three months leading to December 2016 compared with the three months leading to December 2015.

Meanwhile, the Resolution Foundation has warned that public sector pay is set to reduce to a crawl. Economic Analyst for the think tank Adam Corlett said: “Pay is now actually falling, and worst is expected to continue for the rest of the parliament, with levels at the end of the parliament dropping back to levels last seen in 2004."

The organisation’s Earning Outlook revealed that apparent positive performance in real pay within the public sector last year was largely down to favourable inflation levels rather than due to wages and that as inflation rises and public sector cuts continue, workers in the industry - which account for one in six UK workers - will be hard hit.

The poorest wage growth is being felt in health and social work, the think tank reported, and in education pay is now lower than it was in 2003.

The Institute of Employment Rights has developed 25 policy recommendations to encourage fair pay and conditions across the economy and reduce inequality in the UK. The principles of these proposals, set out in our Manifesto for Labour Law, have been adopted by the Labour Party.

Click here to read more about the Manifesto for Labour Law