Inflationary conditions cause a weakening of income and purchasing power. Today’s purchasing power is not what it was a couple of years back, it used to be stronger. Inflationary conditions affect everyone regardless of individual earning power. There are areas where workers are badly affected and worst hit, especially in Devon.
Find below workers worst off areas:
Feedback by the Office for National Statistics (ONS) shows that areas in the South West have a high prevalence of worst off workers. The Torbay area in Devon is the worst area. People in this area today earn less than what they earned 10 years ago. The ONS backs this claim that workers are currently worse off by £25 weekly compared to 10 years ago.
There is currently an average weekly wage of £307.80 by Torbay workers. As a result of a loss rate of 4.7% caused by inflation, some people in Torbay earn £14.50 per week less than what was earned 10 years ago. The current Nominal income for Torbay workers is £307.80 while the Real income (Nominal income less inflation) stands at £293.3.
West Devon also stands out as a poor area for workers with low income earnings. West Devon has weekly Nominal income earnings at £311.6 (with inflation factored in). This means that purchasing power today is not what it was a couple of years back.
Torridge currently has a Nominal weekly income of £325.7, indicating another poor worker hotspot.
Eradicating the problem
Nigel Costley, TUC South West Regional Secretary in a bid to tackle such weekly poor earnings, says: ‘‘our government must help improve wages if the austerity problem is over. Wages must improve to £10 per hour.’’
Income has to increase to improve earnings. This will lead to an improvement in Real income and increase purchasing power. Anti-inflationary methods should also be adopted.
Chancellor Philip Hammond says there should be an improvement in the National Living Wage. An increase in wage should happen from £7.83 to £8.21 per hour.