Struggling Brits to receive a life line in the form of a pay rise
HARD-UP British workers are set to see their first pay rise since 2007, according to the EY ITEM Club.
Although the think tank predicts wages will rise this year by 1.9 per cent and then accelerate, it says it will be 2018 before the rate of growth returns to pre-credit crunch rates because of the number of people joining the labour force.
Negative inflation caused by falling energy and food prices, along with a steady pickup in nominal wage growth will contribute to the first real rise in earnings since 2007.
The think tank’s Martin Beck said: “Real earnings have fallen nearly 10 per cent since 2008, but workers will see more cash in their pockets this year.”
