Coronavirus crisis ‘sparks biggest fall in wages since 1970s’
THE CORONAVIRUS crisis has sparked the biggest fall in wages since the 1970s, alarming new stats show.
The average worker has seen a whopping 4.5 per cent wiped off their pay between March and May this year, the Resolution Foundation said.
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The shock was far worse than the 2008 global financial meltdown, when income fell by 2.7 per cent.
It is the biggest fall since the oil crises and mega inflation which plagued Britain over 40 years ago.
Adam Corlett, senior economist at the Resolution Foundation, said: “Living standards across Britain stagnated in the years running up to the crisis, and fell for the poorest families.
“That stagnation has now given way to the biggest immediate income shock since the mid-1970s, as Britain’s economy – and much of its workforce – went into lockdown.
“The Government’s unprecedented policy response has played a critical role so far in protecting millions of households, and particularly the poorest, from the worst of the crisis.
“But for many the threat of further income falls looms large.” Self-employed Brits have been particularly “hammered” by the lockdown, the think-tank warned in its 2020 Living Standards Audit.
Around 2 million self-employed Brits have seen their income sink by at least a quarter during the crisis.
This group of badly hit self-employed workers lost an average of £300 a week from their income – virtually wiping out their earnings.
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Many were left reliant on the Treasury’s self-employed bail-out package to see them through the lockdown.
Mr Corlett warned the end of the furlough scheme in October will see a huge spike in unemployment.
Poorer Brits working in restaurants, cafes and shops are set to be the hardest hit by these lay-offs.
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