The latest ONS (Office of National Statistics) figures on incomes tell a frightening story. Average earnings fell last year in real terms by 4.6%, a huge drop. Since UK median earnings are now £410 a week and inflation is now running at 5% a week, that represents a fall in disposable income of nearly £19 a week. This of course hits the poorest hardest, for two reasons. Their gross pay increase of the bottom tenth in this last year was only one-third of the gross pay increase of the top tenth. Continue reading →