The rate of wages plunge after inflation in Britain is among the worst in Europe with only Greece, Portugal and the Netherlands doing as bad.
Figures by the British parliament’s Library show workers’ salaries have nosedived by 5.5 percent since 2010. The data released by the opposition Labour party demonstrate that the officially-confirmed drop in living standards in Britain since three years ago when the coalition government unveiled its first austerity plan has also downgraded Britain’s position among European nations in terms of income and costs. "Life is getting harder for ordinary families, as prices continue rising faster than wages [while the government has been] failing badly over the past three years, with working people paying a heavy price,” Shadow Treasury secretary Cathy Jamieson said. While Britain is now competing with the worst-performing European economies in terms of wages, its two main EU rivals Germany and France have seen real wage increases. The situation is so catastrophic that Professor John Van Reenen, of the London School of Economics said the “stunning” fall in real wages has not been seen even in previous postwar recessions in Britain". Labour estimates that each worker will lose a total £6,660 across the coalition government’s five-year term that end in 2015.