'Obstacle' to growth
economy: A fall in the real value of wages since the start of the recession could be a "major obstacle" to the return of economic growth, according to a new report.
A study by the Public And Commercial Services union showed the value of pay had slumped by at least 7 per cent since 2008.
The Government's policy of holding down public sector pay, coupled with increased pension contributions, will cut almost £7bn a year from the value of workers' pay, said the union.
The report, Britain Needs A Pay Rise, said the real value of wages across the economy had fallen by more than £50bn a year since 2008.
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PCS general secretary Mark Serwotka said: "Chancellor George Osborne is borrowing more for failure, we are on the verge of a triple-dip recession, food banks are on the rise and pay day loan sharks are preying on the vulnerable.
"We believe the Government's pay policy, built on the lie that hardworking civil servants are paid too much, is having a seriously damaging effect on the whole economy.
"Instead of burying their heads in the sand and hoping for the best, ministers can and should act now to put money into people's pockets and back into our economy."
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