Squeeze on UK wages set to continue until 2022, thinktank warns

Average pay packet will be more than 20 lower than when financial crisis started in 2007, the Resolution Foundation report says

The average pay packet in Britain in five years' time will still be more than 20 lower than it was before the start of the financial crisis as the biggest squeeze on wages since the end of the Napoleonic Wars extends well into a second decade, a leading thinktank has warned.

The Resolution Foundation said that the downgrade to Britain's future productivity performance expected in next week's budget would have a negative impact on wage growth between now and 2022 and also limit the room for manoeuvre of the chancellor, Philip Hammond.