Real incomes down 2.1 percent in 2010/11

By @ibtimes on

The typical annual salary in Britain fell 2.1 percent in real terms in the year to April compared to the previous 12 months as pay rises failed to keep up with inflation, official data showed on Wednesday.

Median annual earnings for full-time workers rose 1.4 percent to 26,200 pounds in the tax year ending on April 5, the Office for National Statistics (ONS) said in its annual survey of hours and earnings.

By contrast, the average rate of consumer price inflation in the year between April 2010 and March 2011 stood at 3.5 percent.

Regional disparities in pay were still strong, the survey showed. The median weekly wage in London was 651 pounds, while in Northern Ireland it was 451 pounds.

Real incomes are likely to have been squeezed further since April. According to ONS data released last week, average weekly earnings including bonuses grew by an annual 2.3 percent in the three months to September, whereas inflation averaged about 4.7 percent over the same period.

In May the Institute for Fiscal Studies said that Britons probably suffered the biggest drop in incomes in 30 years over the previous 12 months.

(Reporting by Olesya Dmitracova; editing by Ron Askew)

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