Wage squeeze will leave average worker almost £13,000 worse off, Sunak warned

IFS says staggering' annual drop by mid-2020s will follow unprecedented two-decade hit to earnings in UK

The biggest wage squeeze in British economic history will leave the average worker almost 13,000 a year worse off by the middle of the 2020s, Rishi Sunak has been warned.

The Institute for Fiscal Studies (IFS), the UK's leading tax and spending thinktank, said an unprecedented two-decade hit to earnings would leave average household disposable income 42% lower than it would have been had wages grown at pre-2008 financial crisis rates.