UK workers only £1.14 an hour better off than in 2008

UK workers are only £1.14 an hour better off than before the 2008 financial crisis, the Work Foundation has found.

The Lancaster University think tank responded to Office for National Statistics (ONS) figures on employee earnings, which the statistics body published on Thursday (22 October).

Median weekly earnings for full-time employees reached £811.20 in April 2026, up 5.8% from £766.60 a year earlier, the ONS said. After adjusting for inflation, full-time weekly pay grew by 2.7%, while part-time pay fell by 0.1% in real terms.

Median weekly pay across all employees rose by 4.9%, held back by a larger share of part-time jobs and fewer hours worked. Full-time hourly pay climbed 5.7% to £20.81, and median annual earnings for full-time staff rose 4.5% to £40,911.

“While this data indicates that nominal wage growth grew by a healthy 4.9% with real wages increasing by 1.8% over the last 12 months, workers remain on average only £1.14 better off on average per hour than they were since the 2008 financial crisis,” said Aman Navani, senior research and policy analyst at the Work Foundation.

“The long shadow of stagnant living standards and the repeated cost of living crises still loom large over many households,” he said.

“Work Foundation survey data found that only one in five (22%) businesses were planning above inflation pay rises this year, which suggests that many workers may not feel better off as we head into winter,” he added.

Low-paid sectors

“Nevertheless, annual growth in nominal pay in low-paid sectors like accommodation and food services (5.1%) and wholesale and retail (4.8%) was robust, likely due to recent increases in the national minimum wage,” Navani said.

“Workers in these sectors are more likely to be in severely insecure work and face a mix of financial and contractual insecurity, so it is important that these recent pay increases are sustained into the future,” he said.

The ONS said the National Living Wage rose 4.1% between 2025 and 2026. Pay growth for elementary occupations (4.7%) and process, plant and machine operatives (4.1%) tracked that increase closely, as both groups contain many jobs paid near the legal minimum.

Managers, directors and senior officials saw the biggest rise of any occupation group at 6.7%.

London recorded the fastest regional pay growth at 8.2%, while the East Midlands (4.0%) and the North West (4.1%) saw the slowest. Full-time public sector workers earned a median £862.20 a week, up 6.5%, against £794.40 in the private sector, up 5.5%.

Gender pay gap

“The gender pay gap for full-time employees has narrowed again, to 6.8% from 7.2% last year,” Navani said.

“However, this headline masks a stubborn problem at the top,” he said. “The gender pay gap was higher among high-paid employees than among lower-paid employees.”

“Unless the Government and employers tackle the barriers that prevent women progressing into senior high-paid roles, progress in narrowing the gap will remain far too slow,” Navani added.

The Work Foundation urged the government to act before the Budget.

“While some of these headlines pay figures are encouraging, there is no room for complacency ahead of the upcoming Budget,” Navani said. “With inflation ticking up again, Government must prioritise helping households navigate the upcoming winter.”

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