PAY GROWTH PROSPECTS SUBDUED

The Institute for Fiscal Studies (IFS) have warned that the outlook for wage growth and the squeeze on pay is likely to last for over a decade.

 Their analysis of the Autumn Statement, based on figures supplied by the OBR, indicates that workers would earn less in real wages in 2021 than they did in 2008. Over the next four years, lower income families will be the biggest losers, with the poorest third likely to experience a fall in income.

Paul Johnson, director of the IFS, commented: ”We have seen no increase in average incomes so far and it does not look like we are going to get much of an increase over the next four or five years either.”

The “outlook for living standards and for the public finances has deteriorated pretty sharply over the last nine months.”

Real average earnings are forecast to rise under 5% over the next five years, 3.7% lower than the figure projected in March.

Issued by: Enable Independent Financial Life Planners • 
25c North Street, Bishops Stortford, Herts CM23 2LD • Telephone: 01279 755950 - Fax: 01279 657339
Enable Independent Financial Life Planners is a trading style of Enable Independent Limited is authorised and regulated by the Financial Conduct Authority.
It is important always to seek independent financial advice before making any decision regarding your finances. If you would like any assistance, please contact us.
NOTHING CONTAINED IN THE ARTICLES SHOULD BE CONSIDERED AS GIVING INDIVIDUAL FINANCIAL ADVICE