Scottish workers see biggest pay rise in UK

SCOTLAND experienced the largest weekly increase in average full-time earnings in the UK during the past year, newly published figures on pay showed.

Median weekly earnings went up to 519.40 by April. Picture: John Devlin

The rise of 2.1 per cent meant that median weekly earnings went up to £519.40 by April, the Office for National Statistics said yesterday.

Finance secretary John Swinney said the figures showed Scottish Government policies to attract investment, boost infrastructure and invest in workforce training “are working”.

The UK’s overall median full-time gross weekly earnings stood at £518, up 0.1 per cent from £517 in April 2013 – a lower rate than the figure recorded for Scotland.

Median weekly pay for full-time workers went up by just £1 in the year to April to £518, the smallest growth since 1997 for the UK-wide findings, leading to accusations from unions that workers were being “shut out” of the economic recovery.

Adjusted for inflation, weekly earnings fell by 1.6 per cent, continuing a trend since the recession, to levels last seen in the early 2000s.

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London topped the regional table for full-time median earnings at £660 a week, £142 more than the figure for the whole of the UK and about £200 more than in Northern Ireland.

However, Mr Swinney said the overall figures showed Scotland was outperforming the rest of the UK, with higher employment rates and rising wages.

He said: “The latest figures on the job market from July to September also revealed that Scotland has the highest employment and economic activity rates and lowest unemployment rate of the four nations of the UK.

“But there is still more to do. Despite cuts from Westminster, earnings are continuing to rise in Scotland. We are investing in infrastructure, including in transport, housing, colleges, health facilities and schools, and we are providing jobs to the construction sector and stimulating growth.”

The Scottish Government has introduced the living wage of £7.85 per hour – a voluntary rate for employers – for those directly working for it, on top of the statutory national minimum wage of £6.50 per hour for those aged 21 and over.

However, the leader of the Scottish Trades Union Congress (STUC) said the latest findings on pay for Scottish workers showed wage levels had fallen in real terms and had failed to keep up with inflation.

Grahame Smith, STUC general secretary, said: “Today’s report confirms that the median wage in Scotland fell yet again in real terms during the year to April 2014.

“If wages had kept pace with CPI inflation since 2009, the median worker in Scotland would now be earning £1,705 more per year.”

Mr Smith added: “Real wages grew last month across the UK as a whole but this was attributable to falling inflation not rising nominal wages. Real wage growth has been forecast regularly since the recovery in GDP growth became embedded last year but has yet to transpire.

“The STUC is sceptical that real wages, particularly for those in low-wage, insecure work, will start to grow strongly in the short-term.”

Meanwhile, the ONS said that the bottom tenth of full-time employees across the UK earned less than £288 a week, compared with £1,240 for the top 10 per cent, the new figures showed.

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