UK Minimum Wage Hikes Narrow Pay Gap, But Real Wage Growth Stalls

Resolution Foundation reports significant minimum wage increases have reduced pay inequality, yet overall real wage growth remains minimal since 2010.

• Minimum wage hikes have significantly reduced the pay gap between low and middle earners, reaching the lowest level since the 1970s.
• Real wage growth for UK workers has increased by just £16 a week since 2010, despite recent improvements.
• Low-paid occupations, such as bar staff and cleaners, have seen substantial wage increases, outpacing inflation.
• The UK's employment rate has not returned to pre-pandemic levels, unlike most other OECD countries.
• Experts warn that further minimum wage increases could risk higher unemployment among younger workers.

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