Hexham constituency suffers huge fall in real wages…

Hexham constituency suffers huge fall in real wages according to Labour analysis

A North East constituency has seen a staggering fall in real wages according to Labour Party analysis.

The party has said that since 2010, workers in the Hexham constituency saw the largest decline in real wages in the region and one of the steepest falls in the country.

Real wages refers to pay that has been adjusted for inflation - in other words, wages in terms of the amount of goods and services that can be bought.

Using data from the Office for National Statistic's Earnings and Hours worked as well as the consumer price index, including owner occupiers' housing costs (CPIH), Labour say that across the country, wages have fallen by an average of five per cent since 2010, leaving people £1,600 worse off.

The North East has actually fared better than average, with wages falling by £900, or three per cent. However, in the Hexham constituency, real wages declined by 22%, meaning wages are a massive £9,885 lower in real terms than they were in 2010.

The party did not provide a figure for the Blyth Valley constituency. In Berwick, wages fell by 13.5% (£4,514) while in Wansbeck, they fell by 10.9% (£3,560).

Labour’s Shadow Chancellor Rachel Reeves said: “These figures don’t just underline a lack of growth under the Tories. They show the complete failure over 12 years to build an economy that actually works in the interests of working people.

“Married with the billions upon billions of taxpayer money that has been wasted on undelivered projects, crony contracts, unsafe PPE and Tory vanity projects, it shows just what irresponsible stewards of the economy the Conservatives are.

“Labour will stabilise our economy, and we will get it growing with our Green Prosperity Plan and our active partnership with British businesses.”

Hexham MP Guy Opperman, who is also a pensions minister and was first elected in 2010, was contacted for comment. The department for work and pensions responded on Mr Opperman's behalf.

A spokeswoman said: “This Government will always take steps to make sure work pays and Jobcentre support continues to be available for those already in work but on low pay. We have already cut the Universal Credit taper rate and increased the work allowance, so claimants can keep more of their hard-earned money – a boost of £1,000 a year on average.

“The public ONS Annual Survey of Hours and Earnings data - the recommended source on earnings at parliamentary constituency level - shows wages in Hexham rising since 2010.

“Additionally, recognising the pressures of global rising prices we have already provided substantial support to help with the cost of living, including through holding down energy bills this winter, and millions of households will receive up to £1,350 in additional direct cash payments over the next financial year.”

It was also pointed out that the ONS do not publish real earnings calculations at constituency level, as they "do not believe it is analytically robust to do so".

The ONS say the CPIH is the "most comprehensive" measure of inflation and extends the consumer price index to include the costs associated with owning, maintaining and living in one's home.

The Annual Survey for Hours and Earnings (ASHE) is based on employer responses for a one per cent sample of employee jobs, using HM Revenue and Customs Pay As You Earn (PAYE) records to identify individuals’ current employer. The ONS said earlier this year that median weekly earnings for full-time employees fell on the year in April 2022 by 2.6%.

This was, in real terms, among the largest falls seen by the ONS since comparable records began in 1997.

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