No Limits: From Getting By To Getting On
Britain faces a wages crisis, underpinned by low productivity. Britain’s social security system doesn’t support aspiration. Britain needs new support for people in work to progress.
For the last seven years, people’s wages have risen more slowly than the prices in the shops. By 2020 people’s real incomes will still be 5% lower than in 2008, a lost decade. People also often become ‘stuck’ in low pay and cannot advance their careers: three in four people in low pay in 2001 were still low paid a decade later. This is, inpart, a reason for the deficit remaining stubbornly high because wages are not rising at usual pre-recession rates, neither are income tax receipts.