A meaningful pay rise remains out of sight, the Resolution Foundation, an influential research group has warned. It said real wage growth would still be flat and that many households were pessimistic about their finances (27% of working age households thought their financial positions would worsen in the coming 12 months). The trend would worsen in the first few months of next year before leveling out.
The Office of Budgetary Responsibility (OBR) projects that when the full figures for 2017 are confirmed they will show that wages fall by 0.4% in real terms as inflation has soared to more than 3%.
Torsten Bell, director of the research group, said 2017 had been "a tough year for living standards". He explained, "The good news is that things will get better next year. The bad news is we may only go from backwards to standing still..."