WAGES in Scotland are falling “further and faster” than those in the rest of the UK, new research has shown as a top trade unionist warned the country was at risk of becoming the “poor relation” in the Union.
Analysis carried out by the Scottish Trades Union Congress (STUC) showed Scots had suffered the biggest real terms pay cut in the whole of the UK over the past two years.
Using pay as you earn (PAYE) tax data, the organisation calculated that real wages fell north of the Border by 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.
This was two points above the projected cut of 1% across the two year period in the UK, using the same data, the STUC said.
Roz Foyer, the STUC’s general secretary, blamed the Scottish and UK governments for the fall in Scottish spending power – blaming Westminster for its “economic stupidity” and Holyrood for its “punitive public sector pay strategy”.
She 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.”
A Scottish Government spokesperson said: “Employment law is reserved to the UK Government. However, Scotland is leading the way, with 91 per cent of employees aged over 18 earned the real Living Wage or more in 2022 – higher than any other UK country.
"That has come about through hard work and consistent advocacy from Scottish ministers and our partners like Living Wage Scotland.
“In comparison to the rest of the UK, our approach to public sector pay has resulted in Scottish public sector workers receiving between 4% and 6% higher salaries on average over the last three financial years."
A UK Government spokesperson said: "We have protected those on low incomes with a record 9.7% increase in the National Living Wage [minimum wage] - expected to benefit 160,000 in Scotland - alongside lifting millions out of paying tax by raising income tax thresholds above inflation.
“We recognise how tough things are for families across the country, so we are helping with cost of living support worth £3,300 on average per household this year and last.
“As the Chancellor has made clear, the best way we can help people’s wages go further is to stick to our plan to halve inflation this year.”
