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(asked on 21st July 2022) - View Source

Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what assessment he has made of the assumptions on which the OECD has produced its projection for UK wage growth to be (a) negative and (b) the worst performing in the G7 over the next 2 years.


Answered by
Richard Fuller Portrait
Richard Fuller
This question was answered on 5th September 2022

UK inflation has risen rapidly largely because of global factors such as higher global energy prices and post-pandemic supply chain bottlenecks. More recently domestic factors have played a role; in its June Economic Outlook, the OECD stated that UK wage compensation per employee growth was 5.2% in 2022 and is forecast to be 4.2% in 2023. High inflation is putting downwards pressure on real wages across G7 economies.

The Government understands the pressure households are under, and this year is providing a total of £37bn of support, including £550 of support to the vast majority of households, and at least £1200 to millions of the most vulnerable. In the long term however, the best way to raise living standards is through economic growth, which the government is taking action on through initiatives to boost growth and productivity across the country.

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