Earnings drop by 5% in real terms

Workers are taking home about £1000 less each year in their pay packets than they did in 2009. Above-target inflation means that salaries are not going as far as they used to. Real-term annual take-home pay has fallen by over a grand from figures recorded less than two years ago, according to BBC Panorama research. Stagnant wages and high inflation were cited as some of the reasons behind the £1,088 drop in wages. Data collected by the Centre for Economics and Business Studies showed that the average British employee earned £20,149 at the beginning of this year, indicating a 5% drop from what they earned in the middle of the recession.