Thanks to some research by the IFS (that’s the Institute for the Fiscal Studies) done for BBC (we assume you know what that one stands for), we now know that we’re £800 a year worse off than we were ten years ago, rather than just feeling it. Cool!
The IFS found that while our actual pay packets haven’t necessarily been cut, our “real wages” have dropped, mostly for young people (that’s those 39 and under apparently—rude). Real wages are what economists calculate to get an understanding of how stuff actually feels. They’ll adjust income for any increases in the cost of living. The latter has shot up (surprise surprise), and what we’re earning each month hasn’t (surprise surprise).
There is perhaps an explanation for why younger people were hit harder, though. The bloke in charge at the IFS (Paul Johnson) said "The average earnings of those in their 20s and 30s fell especially sharply in the immediate aftermath of the recession, perhaps as employers were able to cut starting wages more than wages of those already in work."
In its defence, the government says that we’ve got record levels of employment and tax cuts have helped support many millions of workers.
There’s a lot of talk about the financial crash at the moment, because it’s the ten year anniversary of it happening. Party.
Referencing the government's promise that universal credit would lift 350,000 children out of poverty, Corbyn maintained that some are saying that current system will actually increase the number of children in poverty.
They both stood their corner and made sure we heard what they wanted us to hear, anyway.
