Article 261RT UK risks return to pay squeeze, says thinktank

UK risks return to pay squeeze, says thinktank

by
Larry Elliott Economics editor
from on (#261RT)

Resolution Foundation predicts rising prices and stalling of jobs growth will hit real earnings next year

The UK faces the risk next year of a return to the squeeze in real pay suffered earlier in the decade as higher prices and a stalling of jobs growth puts living standards under pressure, a thinktank has warned.

The Resolution Foundation - which concentrates on the living standards of those on low to middle incomes - said 2015-16 had been the fastest year of real wage growth since 2001 but said the combination of low inflation and strongly rising employment would not be repeated.

Related: Rising executive pay threatening reputation of big business - report

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