Workers' wages fall to record lows as Tories 'lost control of economy'

Boris Johnson is on his second holiday in a fortnight as Britons face a deepening cost of living crisis. Between April and June, the regular salary fell by 3% taking into account soaring inflation, according to official statistics.

Many employers are offering their staff a cost of living allowance in the face of rising prices (

Image: PA)

The Tories have been accused of 'losing control' of the economy as new statistics show real wages have fallen by a record 3%.

Figures from the Office for National Statistics paint a grim picture of the worsening cost of living crisis when adjusted for inflation between April and June.

Regular wages have fallen, the fastest drop since records began in 2001, statistics show, as prices continue to rise.

Inflation just hit a new 40-year high of 9.4% in June and is expected to peak at around 11% later this year, hitting families already struggling with the cost of living crisis .

Shadow climate change secretary Ed Miliband described the drop in workers' wages as a "very dark moment".

Chancellor Nadhim Zahawi (

Picture:

Wiktor Szymanowicz/REX/Shutterstock)

The Resolution Foundation think tank insists that the drop in real average weekly earnings represents the biggest drop since 1977.

Nye Cominetti, senior economist at the Resolution Foundation, said the magnitude of the fall in wages "is even greater than the official figures suggest, as estimates of wage growth are still artificially boosted by the effects of last year's furlough scheme".

The unemployment rate rose 3.8%, but hiring demand remains slow as vacancies fell by 19,800 over the same period.

Chancellor Nadhim Zahawi tried to paint a positive picture, saying the labor market is in a “strong position”.

But in reality, families are facing a deepening cost of living crisis, with skyrocketing energy bills and plummeting real wages.