Employees lose 5% of take-home pay, research shows
Post by John Chappels
on 28 March 2011 in Family & Finance
UK workers are worse off financially, in real terms, than
they were in the middle of the recession, a new study has revealed.
Work commissioned by the BBC's Panorama programme discovered
that the average employee in Britain now takes home £1,088 less per year than
they did two years ago, once inflation is taken into account.
The research was conducted by the Centre for Economics and
Business Studies and shows the real effect that company pay freezes or below-inflation
rises are having on workers in the UK. Allowing for inflation, the average
amount of money that is paid into employees' bank accounts is lower now than in
The loss of income is certainly being felt by families
trying to manage a shopping budget. Increases in the price of fruit and
vegetables have meant that many families on tight budgets and people under the
age of 25 have cut back.
The prices of items such as grapes and pineapples have shot
up, although there is also some good news as the cost of bananas and apples has