Pay packets worth less than 2008 in half of North East local authorities – TUC analysis reveals

• Real wages still below 2008 level in 6 of the region’s 12 local authorities
• TUC says longest pay squeeze in modern era is a “damning indictment” of the Conservatives’ economic record
• North East workers would be £160 a week better off if pay had grown at pre-crisis trends

The analysis of official statistics shows that 16 years on from the financial crash wages are lower – in real terms – in 6 of the region’s 12 local authorities (for which data is available).

Those local authorities are:

• South Tyneside
• County Durham UA
• Sunderland
• Gateshead
• Redcar and Cleveland UA
• Hartlepool UA

Across the region as whole average weekly pay is just £2 a week higher – in real terms - than in 2008 after more than decade of stagnation.

And in every North East local authority real wages are far below where they would be if they had grown at the pre-2008 growth rate.

The union body estimates that if wage growth had been sustained at previous rates the average North East worker would be £160 a week better off.

Unprecedented pay squeeze

The TUC described the findings as a “damning indictment” of the Conservatives’ economic record.

Millions of UK workers are currently enduring the longest pay squeeze in more than 200 years.

Not since Napoleonic times has there been such a sustained period of wage stagnation.

The analysis shows that even in areas where real wages have recovered – pay growth is way below historic trends.

The UK has one of the worst records among OECD nations for pay growth since the financial crisis.

When the Conservatives took office in 2010, a wage recovery was already underway following the financial crisis.

However, the wage recovery went into reverse when the Conservatives hit the UK with their austerity programme, including real terms pay cuts across the public sector.

TUC Regional Secretary Liz Blackshaw said:

 “Hard work should pay for everyone. But people are still worse off than in 2008 in many parts of the North East. And in every corner of the region pay growth is way below historic trends.

“This is a damning indictment of the Conservatives’ economic record. “This is a damning indictment of the Conservatives’ economic record. This is the same government that’s given us the most dramatic fall in living standards on record.

“The Tories failure to grow the economy - and their scorched-earth austerity policies – has decimated family budgets. Just imagine how much better off people would be if they had an extra £160 a week in their pay packets – and how much more prosperous the country would be.

“It doesn’t have to be this way. We can create a new era of decent pay growth again where families’ living standards rise rather than falling backwards.

“But we need a new approach to get there. That means a proper plan to get the economy growing again by investing in UK industry, and a New Deal so that working people get a fair share of the wealth they create.”