How will affect you?
Independent economists have said, the outlook for wages is “dreadful” with real pay failing to grow for more than ten years.
The Institute for Fiscal Studies (IFS) workers would earn less in 2021 than they did in 2008.
Between now and 2020 it will be families with lower incomes that are hit the worst, with the poorest third seeing incomes drop the most.
Chancellor Philip Hammond defended the new Autumn Statement plans, saying that the government brought job growth and that government borrowing is falling.
Paul Johnson, director of the IFS, told the BBC: “This has, for sure, been the worst decade for living standards certainly since the last war and probably since the 1920s,”
“We have seen no increase in average incomes so far and it does not look like we are going to get much of an increase over the next four or five years either.”
He also said: The “outlook for living standards and for the public finances has deteriorated pretty sharply over the last nine months.”
Real average earnings which factor in the rising cost of living were forecast to rise by less than five per cent between now and 2021, that forecast is 3.7 per cent lower than what was projected in March.