The Tories’ legacy? The worst pay growth of any government for a century.

The latest Office for National Statistics (ONS) figures on employee earnings show that real average annual wage growth was just 0.3% from 2010 to 2024, compared to 1.5% from 1997 to 2010. The average worker would be £117 a week better off had pay increased since 2010 at the same pace as between 1997 and 2010. But crucially, pay growth under Conservative-led governments from 2010-2024 was worse than for any other period of government since the 1920s.

Worst pay growth for a century

The Trades Union Congress (TUC) has condemned the figures.

Commenting on annual employee earnings data published by the ONS, which show that wages barely grew between 2010 to 2024, TUC general secretary Paul Nowak said:

Everyone who works for a living should earn a decent living. But under the Tories, it was the worst pay growth for any period of government in the last 100 years. We need a new approach.

The government’s Employment Rights Bill will help to give more workers fair pay, job security, and dignity at work. But we also need an investment budget to create a new era of growth with rising wages and higher living standards.

Gender pay gap still not improving

The ONS figures, released on Tuesday 29 October, also show that the gender pay gap for full time employees is 7.0%, but more significantly it is 13.1% for all employees. At current rates of progress, the gap for all employees will not be closed until 2040.

Paul Nowak said:

The gender pay gap is closing at a snail’s pace. At this rate it will still take 16 years to close.

We need bolder action, so that we don’t consign another generation of women to pay inequality.

Labour’s Employment Rights Bill will require large employers to set out clear action plans on how they will close their gender pay gaps, rather than just reporting what they are doing.

We also know that fixing care is critical to raising women’s earnings, as they bear the brunt of caring responsibilities.

The Employment Rights Bill will help by introducing fair pay agreements to stop the race to the bottom on pay and conditions in care work. And it will help to recruit and retain staff.

And we desperately need more flexible, affordable and accessible childcare for all families, that works around shifts, weekend work and irregular working patterns.

The TUC says many of the other policies in the Employment Rights Bill will help close the gender pay gap, including:

• Strengthening flexible working rights by introducing a day one right to work flexibly.
• Banning exploitative zero-hours contracts to help end the scourge of insecure work, which is particularly widespread in sectors like social care.
• Giving all employees day one rights on the job. Labour will scrap qualifying time for basic rights, such as unfair dismissal, sick pay, and parental leave.
• Extending redundancy and unfair dismissal protections for pregnant women and new parents.

Featured image via the Canary