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Workers in Scotland at risk of becoming the poor relation of the UK

New analysis from Scotland’s largest trade union body has shown workers in Scotland have suffered the biggest real terms pay cut with wages falling further and faster than the UK average over the last two years.

Using PAYE data, the Scottish Trades Union Congress estimates real wages in Scotland fell 3% between June 2021 and June 2023 with the average employee in Scotland losing £1,448 as a result of pay not keeping up with inflation.

UK PAYE wages fell 1% between June 2021 and June 2023 with the average worker in the UK losing £995 during the same period. The news comes ahead of next week’s labour market forecasts potentially indicating real wages rising again.

Advising ‘caution’ ahead of the forecast, STUC General Secretary Roz Foyer warned it would take much more than one-month wage growth to undo two years of cost-of-living suffering.

Commenting, Roz Foyer said:

“What this analysis shows is that workers in Scotland are at risk of becoming the poor relation of the UK with wages falling further and faster than the UK average.

“The blame lies firmly at the door of our political class with ordinary working people being let down by two governments. The UK Government, through its economic stupidity and suppression of wages, has pushed workers to the brink whilst the Scottish Government is hardly helping through its punitive public sector pay strategy.

“The Scottish Government must immediately revisit this strategy and provide workers with the real terms support they need. One month’s potential growth will be cold comfort for workers who have endured over two years of cost-of-living agony, denigrating their living standards and decimating their incomes.

END

You can read the full briefing here.