The top 1% of high earners in the UK have experienced a real wage increase of 7.6% over the last two years, while the average employee salary has risen by only 2 pence per hour.
A TUC analysis of government hourly pay data between 2016 and 2018 shows that payments among top earners have risen faster than in any other group.
According to the annual survey of working hours and income of the National Statistics Office (ONS), wages increased by an average of 7.6% in 2016 to £ 63.18 in 2018 from £ 58.73 in the same period. In the same period, real wages rose on average Workers only by 0.1% or 2 percentage points to £ 12.71 to £ 12.73.
The TUC said that the real average wage, adjusted for inflation, was still worth less in real terms than it was before the financial crisis, which had been the main driver of wages since the end of the Napoleonic Wars.
Frances O Grady, secretary-general of the TUC, warned that the gap between the richest and everyone else under the Prime Minister would continue to widen, Boris Johnson's proposed tax cut for high earners, which will cost the Treasury £ 9.6 billion a year , according to the Institute for Fiscal Studies (IFS).
"While millions are struggling with the cost of living in the UK, paying the front-runners is back in the fast lane," O'Grady said. "We need an economy that works for everyone, not just the richest 1%. Boris Johnson's promised tax credit for high earners would only exacerbate the situation. The Prime Minister focuses on helping his rich friends and donors, not the working people. "
During his campaign to become Tory's leader and prime minister, Johnson said he would increase the 40 pence tax threshold from £ 50,000 a year to £ 80,000. "We should raise the income tax thresholds so we can help the large sums that went into the higher tax rate through the tax burden," Johnson said in a telegraph column.
According to IFS, the implementation of Johnson's plan would cost around £ 9 billion and benefit the 4 million highest-income taxpayers. "Most of the profit goes to those in the top 10% of the income distribution who would earn on average almost £ 2,500 a year," said the IFS.
"The biggest profits will actually be high-income retirees, as they are not affected by the associated increase in the national insurance ceiling."
The Resolution Foundation calculated that according to Johnson's plan, someone earning £ 80,000 a year would reduce the tax burden by £ 3,000 a year. "That may not be £ 350 million a week, but at £ 57 a week, that's not bad – just what a young unemployed person is supposed to live on today's unemployment benefits," said Torsten Bell, director of the foundation.
"Of course, only a very specific group would benefit at all. The typical income in this country is £ 26,400. Only one in seven will earn enough to benefit from this policy – and the biggest winners will be the ones with the highest incomes. In fact, 83% of profits go to the top 10% of households. Someone on say an MP's salary of £ 79,468 wins £ 2,946. A nation is not. "