In the past seven years, the actual value of the income earned by those working full-time in Bromley and Greenwich has actually fallen by 21.8 per cent. The figures, which were released by the GMB trade union, also highlight that over the same period the inflation rate has almost tripled compared to wage rises.
In 2008, the Annual Survey of Hours and Earnings Report showed that the average wage was £31,494. Between this point and 2015, wages only rose by £2,195 (7 per cent) to £33,689. However, the inflation rate in the last seven years has increased by 20.6 per cent, which is nearly three times the increase in wages. This differentiation means that the money Bromley residents are earning is actually worth less on the high street.
From April 2008 to April 2015, the value of earnings throughout the country fell by 13.6 per cent. However, the effects of this are more profound in certain parts of London, including Bromley and Greenwich. Both of the boroughs are in the top 20 areas for the highest drop in average real wages. In Bromley, there was a 20.1 per cent drop, while Greenwich’s figure dropped by 23.4 per cent. In London as a whole, the value decreased by 23.2 per cent.
The decline in average real wages has a knock-on effect on the whole economy and reduces the amount of tax that the Treasury earns.
Do you think that your wages have kept up with inflation? What impact has this had on your lifestyle and financial situation?
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