Brexit vote has cost British workers a week of wages - new analysis
2 min read
British workers have already lost almost a week in wages because of the historic vote for Brexit, new analysis has claimed.
Rising prices in the wake of the referendum result are equivalent to a cut in annual pay of £448 for the average worker, according to a study by the London School of Economics.
The report on living standards - co-authored with the University of Nottingham and the University of Warwick - says Brexit is costing the average household £7.74 a week – or £404 a year.
Research leader for the report Dr Thomas Samson said UK families were “paying an economic price for voting to leave the EU”.
The 10% cut in the Pound immediately after the referendum helped push inflation up by 1.7%, according to the Centre for Economic Performance report funded by independent thinktank UK in a Changing Europe.
Prices for a range of everyday items including bread, milk, cheese and eggs have all risen – adding to household bills and effectively cutting the value of wages.
Inflation hit 3% in the year to October and remained the same for the following month.
The impact has hit Scotland, Wales and especially Northern Ireland the hardest, with London the least affected area.
Dr Sampson said: “Even before Brexit occurs, the increase in inflation caused by the Leave vote has already hurt UK households.
“Our results provide compelling evidence that, so far, UK households are paying an economic price for voting to leave the EU.”
It follows a separate study by the National Institute of Economic and Social Research that said British households were more than £600 a year worse off following the Brexit vote.
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