Britain’s biggest wage winners and losers of the last 20 years

If you feel like you have less disposable income than you used to, despite the fact you earn more, it may not be a case of lifestyle creep.

As it turns out, two-thirds of the 158 UK jobs analysed in a recent study now pay less in real terms than they did in 2005.

But this stagnation is worse within certain professions — and they may not be the ones you’d assume.

According to new research by Knowledge Train, using ONS salary data, doctors have actually suffered the biggest reduction in spending power of any job over the last 20 years.

While medical practitioner’s wages have gone up slightly, from £76,873 in 2005 to £78,796 now, after accounting for inflation, their pay has technically fallen by 42%.

NHS workers have staged a series of strikes recently, protesting salary stagnation and worsening working conditions amid skyrocketing inflation. And given they have the nation’s health in their hands, it’s understandable negotiations led to historic multi-year pay deals.

It’s a similar story for legal professionals. Despite wages rising in cash terms from £32,881 to £35,507 over the past two decades, these workers are now 39.1% worse off than they were previously.

Some have lost out even where their rises are more significant, too. Insurance underwriters, for example, may earn £7,800 more on paper than in 2005 — currently averaging at £41,610 compared to £33,828 — but effectively make 31% less nowadays.

On the other hand, there have been some wage growth winners; most notably, hairdressers and barbers.

Their pay rise by 34.6% after inflation over the same period, from £10,177 to £24,279, marking the biggest real-terms gain of any profession analysed.

Next up on the list was retail cashiers and checkout operators at 29%, followed by leisure and theme park attendants and bar staff at 25.5% and 23.5% respectively.

It’s important to note though, while these roles may have seen the most real terms wage growth, their average salaries are still far below the national average of £39,260 — in fact, typically under £30,000.

Rather than these professions now being well paid, it seems they’re merely catching up after being notoriously underpaid.

The only outliers are rail travel assistants, who check tickets and help passengers on trains, and have seen their pay rise by 113% before inflation to £46,062 (previously £21,587). That equates to a 20.4% gain in real terms, and means they now average out at more than social workers on £44,550.

Commenting on the study, Simon Buehring, founder and managing director of Knowledge Train, said: ‘Over the past 20 years, the biggest rewards haven’t gone to those with degrees or traditionally prestigious jobs, they’ve gone to workers with scarce skills, strong demand and bargaining power.

‘Minimum wage rises have lifted pay at the bottom of the market, faster than inflation increases have benefited unionised and safety critical roles like rail staff and paramedics, and skills shortages have pushed employers to bid up pay where they can’t easily fill vacancies.

‘Meanwhile, years of public sector pay restraint help explain why doctors and other qualified professionals have fallen behind.’

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