The spending power of workers in many UK regions will remain below the level it was before the pandemic until the end of 2024, a think tank has warned.
The National Institute for Economic and Social Research said a triple blow of Brexit, Covid and Russia’s invasion of Ukraine had badly affected the economy.
It projected the UK was set for five years of “lost economic growth”, with the poorest hit hardest.
It projected the UK was set for five years of “lost economic growth”, with the poorest hit hardest.
Over the last few years inflation – the rate at which prices rise – has soared, forcing up the cost of living for millions.
Wages have also climbed, but not as fast as prices, leaving households across the UK feeling squeezed.
The National Institute for Economic and Social Research (Niesr), one of the UK’s oldest economic forecasting bodies, said that would continue to have an impact on real wages, or pay when inflation is taken into account.
Real wages would only return to 2019 levels by late next year in regions such as the North East, Yorkshire, the West Midlands, Wales and Northern Ireland.
By contrast people’s real wages in London, southern parts of England, the North West and Scotland were likely to recover more quickly.
The spending power of workers in many UK regions will remain below the level it was before the pandemic until the end of 2024, a think tank has warned.
It projected the UK was set for five years of “lost economic growth”, with the poorest hit hardest.
The National Institute for Economic and Social Research said a triple blow of Brexit, Covid and Russia’s invasion of Ukraine had badly affected the economy.
Over the last few years inflation – the rate at which prices rise – has soared, forcing up the cost of living for millions.
It projected the UK was set for five years of “lost economic growth”, with the poorest hit hardest.
It projected the UK was set for five years of “lost economic growth”, with the poorest hit hardest.
Over the last few years inflation – the rate at which prices rise – has soared, forcing up the cost of living for millions.
Wages have also climbed, but not as fast as prices, leaving households across the UK feeling squeezed.
The National Institute for Economic and Social Research (Niesr), one of the UK’s oldest economic forecasting bodies, said that would continue to have an impact on real wages, or pay when inflation is taken into account.
Real wages would only return to 2019 levels by late next year in regions such as the North East, Yorkshire, the West Midlands, Wales and Northern Ireland.
By contrast people’s real wages in London, southern parts of England, the North West and Scotland were likely to recover more quickly.
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