PAY-PACKETS in York have fallen by almost 10 per cent in the last 12 months - the largest drop in the country.

Figures compiled by the Office for National Statistics show the city's wages have plunged by 9.1 per cent, placing York at the bottom of a list of 10 places which show signs of the unwanted trend.

The second largest trend was found in Northampton where wages dropped by 5.3 per cent, followed by Bolton which saw a 4.6 per cent fall.

The worrying results have prompted one charity to call for a long-term strategy into tackling the reasons behind the dramatic change.

Helen Barnard, a policy and research manager at the Joseph Rowntree Foundation (JRF), said: "It is worrying to see that wages in York have dropped by 9 per cent in the last year. "This drop in wages coupled with the rise in the costs of essentials, means that people in York are not immune from a national trend that is adding pressure on families’ budgets.

"Our latest state-of-the-nation report highlights the rise in poverty among working families: two fifths of people who moved into work in the last year were paid less than the living wage.

"The Joseph Rowntree Foundation supports the York Living Wage Coalition. But the Living Wage, on its own, cannot solve poverty. We need a long-term comprehensive strategy to tackle the causes of poverty, namely the high costs of essentials, housing and low pay."

Neil Foster, policy and campaigns officer for the Yorkshire and the Humber TUC, said the figures were "devastating".

He added: "While average earning in York remain higher than the regional average this is a devastating drop for the city over the last year.

"At a time when the coalition are claiming we’re in the midst of recovery it’s hard for a lot of people to celebrate that claim if their wages and living standards are falling.

"These chilling figures should increase the clamour for decent jobs and fair pay but we need a break with wage-depressing austerity measures and arguably more devolved economic powers to swiftly turn things around."