The average earnings of Tower Hamlets residents were more than 24% lower in 2016 than in 2007 – the fourth biggest fall in London.

Research from the GMB union found typical wages for those living in the borough had fallen by 3.6% from £48,270 in April 10 years ago to £46,534 in the same month in 2016.

Once inflation of 27.26% had been taken into account, GMB said the real-terms drop in earnings for residents was 24.2%.

The study found neighbouring boroughs had done slightly better, with Newham residents seeing their earnings fall by 6.7% and those in Greenwich experiencing a drop of 7.2%.

In contrast, Lewisham was one of only two boroughs in the capital to see wages rise. There earnings increased by £9,000, equivalent to plus 2.3% accounting for inflation.

According to GMB, the real value of earnings for all full-time employees living in London dropped by an average of 17.9%.

GMB said one of the reasons for the decrease was because of “employers’ hostility” towards workers’ rights.

The union’s London regional secretary Warren Kenny said: “There are still 27 London boroughs where earnings are below the level of 2007 once inflation has been taken into account.

“We need several years of growth of fill the gap and to meet the ever rising cost of housing.

“Last month the GMB congress called for hostile action by employers against workers wanting to join unions to be made a criminal offence punishable by punitive fines and prison sentences.

“The current position where employers can violate the human rights of workers to join trade unions and to seek collective bargaining with impunity can no longer be tolerated.

“All workers should be looking for decent pay rises in both the public and private sectors.

“So as well as Parliament acting on the pay cap in the public sector it has a key role to play in liberating the UK working class to fight for their fair share of national income now going to capital.”

The worst affected borough was Westminster, with residents experiencing a real value fall of 38.7%, while Merton residents were top of the table with an increase in their wages of 8.6%.

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