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GMB study shows average earnings in East of England have decreased since 2007

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Average earnings in East of England in 2017 are still only 89.4% of real value in 2007 after inflation new GMB study shows

Workers require substantial pay increases to make up the lost ground and are needed to boost spending power to keep economic growth on track says GMB London 

A new study by GMB of official data shows that in the East of England full-time workers mean gross annual pay in 2017 was just 89.4% of what it was in 2007. In 2007 the mean gross annual pay of full-time workers was £32,134. In 2017 that figure was £37,855, which when you factor in inflation at 31.7%, sees a decrease in pay of 10.6%.

Over the same period the decrease in earnings in the United Kingdom was 10.4%. In 2007 full-time workers mean gross annual pay in the UK was £30,015. By 2017 the figure was £35,423. After inflation, this is just 89.6% of what workers were earning in 2007.

The full-time workers gross annual pay in South Cambridgeshire in 2017 was just 74.6% of what it was in 2007. This was the biggest decrease in the East of England. It was followed by Braintree at 79.4%, followed by Bedford 79.8%, East Hertfordshire 80.3%, Epping Forest 82%, Broxbourne 83%, Stevenage 83.1%, Hertsmere 83.7%, Broadland 84.2%, and Waveney 84.3%. Only 6 areas, including Forest Heath, Babergh, Chelmsford, and Watford, Ipswich, and St. Albans, saw an increase in earnings over the 10-year period.

The figures covering 44 councils in the East of England are set out in the table below, ranked by the highest percentage drop since 2007. This is from a new study by GMB London Region of official data from the Office of National Statistics (ONS) for 44 councils in the East of England. It compares full-time workers mean gross annual pay in 2007 and 2017, followed by 2017 earnings as a percentage of 2007 earnings after inflation. [See notes to editors for sources and definitions.]

 

annual survey of hours and earnings  - resident analysis

 
 

ONS Crown Copyright Reserved

   
         
 

RPI Inflation between April 2007 and April 2017b - 31.74

 
         
 

Full Time Workers, Mean gross annual pay

   
         
   

2007 - full-time workers mean gross annual pay

2017 - full-time workers mean gross annual pay

2017 as % of 2007 including inflation of 31.7%

   

£

£

%

 

England

30,852

36,118

88.9

 

Great Britain

30,229

35,608

89.4

 

United Kingdom

30,015

35,423

89.6

 

East

32,134

37,855

89.4

         

rank

       

1

South Cambridgeshire

43,856

43,093

74.6

2

Braintree

34,195

35,791

79.4

3

Bedford

33,093

34,772

79.8

4

East Hertfordshire

41,045

43,396

80.3

5

Epping Forest

43,301

46,752

82.0

6

Broxbourne

36,674

40,103

83.0

7

Stevenage

30,090

32,943

83.1

8

Hertsmere

37,024

40,817

83.7

9

Broadland

27,504

30,503

84.2

10

Waveney

24,052

26,700

84.3

11

Rochford

34,828

38,677

84.3

12

Welwyn Hatfield

33,944

37,846

84.6

13

South Norfolk

28,345

31,649

84.8

14

Colchester

32,471

36,378

85.0

15

Breckland

23,959

27,043

85.7

16

Brentwood

44,653

50,437

85.7

17

Huntingdonshire

31,504

36,167

87.1

18

Fenland

25,284

29,610

88.9

19

Southend-on-Sea

30,534

35,836

89.1

20

Norwich

24,307

28,957

90.4

21

Uttlesford

41,993

50,143

90.6

22

North Norfolk

21,244

25,452

90.9

23

Peterborough

25,393

30,550

91.3

24

King`s Lynn and West Norfolk

24,692

29,714

91.3

25

Thurrock

28,501

34,584

92.1

26

Castle Point

30,404

37,257

93.0

27

East Cambridgeshire

32,995

40,578

93.4

28

Cambridge

32,526

40,192

93.8

29

Basildon

33,082

40,973

94.0

30

Maldon

32,398

40,304

94.4

31

Great Yarmouth

23,020

28,943

95.4

32

St Edmundsbury

27,002

34,021

95.6

33

Tendring

26,004

32,809

95.8

34

Suffolk Coastal

31,032

39,157

95.8

35

Luton

24,905

31,596

96.3

36

Dacorum

36,108

46,411

97.6

37

Harlow

26,741

34,658

98.4

38

North Hertfordshire

33,765

43,894

98.7

39

St Albans

45,667

60,358

100.3

40

Ipswich

24,708

33,283

102.2

41

Watford

35,183

47,904

103.4

42

Chelmsford

33,354

46,150

105.0

43

Babergh

28,775

42,423

111.9

44

Forest Heath

21,397

37,346

132.5

         
 

Central Bedfordshire

-

37,833

-

 

Mid Suffolk

#

31,369

-

 

Three Rivers

44,985

#

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# These figures are suppressed as statistically unreliable.

- These figures are missing.

Results for 2003 and earlier exclude supplementary surveys. In 2006 there were a number of methodological changes made. For further details goto : http://www.nomisweb.co.uk/articles/341.aspx.

Estimates for 2011 and subsequent years use a weighting scheme based on occupations which have been coded according to Standard Occupational Classification (SOC) 2010 that replaced SOC 2000. Therefore care should be taken when making comparisons with earlier years.

Warren Kenny, GMB Regional Secretary said:

"Across the East of England as a whole the real value of average wages for workers resident in the region in 2017 are only 89.4% of the buying power they had in 2007 when inflation is factored in as this latest study by GMB shows. Indeed residents in 19 of the 44 areas in the region fared much worse than this with residents in some areas very badly hit.

“Two conclusions can be drawn from the study. The first is that the impact on the living standards of ordinary workers of the bankers recession in 2008 onwards is still with us a decade later. Not a single person has been punished by a prison sentence for the recklessness and law breaking that has had catastrophic consequences as these figures show. The Panama Papers and the Paradise Papers show that tax evasion and tax avoidance are still going ahead undealt with on an industrial scale. 

“The second conclusion is that ordinary workers require substantial pay increases to make up the lost ground. These increases are needed to boost spending power to keep economic growth on track."

ENDS

Contact: Dave Powell 07710 631 349 or Shaun Graham 07885 706 556 or GMB Press Office 07970 114 762

Notes to Editors:

1] Source: Annual Survey of Hours and Earnings, Office for National Statistics, Crown Copyright Reserved

2] The figures are annual Mean salary for all Full-time employees, residential based

3] ASHE is based on a 1% sample of employee jobs, drawn from HM Revenue and Customs Pay As You Earn (PAYE) records.

4] Inflation rate between April 2007 and April 2017 was 31.74%.