September 29, 2023

Wages are falling sharply in the UK

Wages are falling sharply in the UK

Workers in the UK are currently facing the biggest fall in wages in more than two decades. Rising food and energy prices, similar to the British, are responsible for this Office for National Statistics (ONS) says in a statement. According to this, real, inflation-adjusted incomes fell by 2.8 percent between March and May alone, compared to last year. This is the fastest and sharpest decline since records began in 2001.

“In recent months, fueled by the Russian invasion of Ukraine, global prices of energy and daily consumer goods have risen, fueling global inflation. The world’s fifth largest economy is one of the hardest hit among rich countries,” writes “CNN” on the occasion of the release of ONS figures. Consumer prices hit a 40-year high, rising 9.1 percent in May – the highest compared to all other G7 countries.

This burden is clearly felt in British families. “Energy and food bills are bringing tears to Britons’ eyes, exposing them to the worst cost-of-living crisis in decades,” the report said. According to the Bank of England’s current forecast, this will continue throughout the year. Disposable income for the country as a whole is expected to post the second biggest decline since records began in 1964.

Outgoing Prime Minister Boris Johnson’s government has promised state grants of 400 pounds (about 470 euros) per family to counter the dramatic growth and ease the burden on citizens. Finally, last month he finally bowed to public pressure and introduced a new tax system aimed at cutting almost £5 billion of money from the booming profits of oil and gas companies.

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High cost of living in UK

Average cost of living for a British household 2,727.32 Euros (£2,322.26) excluding rent. Attached is the estimated monthly cost for an individual 787.71 Euros (670.73 British Pounds) excluding rent. This means that the cost of living in the UK is on average 0.49 per cent higher than in Germany. The difference in rents is huge: in the UK, the average is 17.97 per cent higher than in Germany.

Source: count (As on July 22, 2022)