FALLING oil prices are good for the UK economy, a senior Bank of England figure has claimed.

Ben Broadbent, the Bank’s deputy governor, said the offshore sector’s woes have provided a “net good” for the country’s finances, adding real wages have risen more than seven per cent.

Mr Broadbent’s comments come as industry leaders Shell and BP prepare to cut thousands of jobs, with many sector players already having pared back their workforces amid a slump in the price of oil.

They also follow Bank governor Mark Carney, who, earlier this week, said interest rates would remain at 0.5 per cent, potentially until late 2017.

Mr Broadbent said: “We will respond to events as and when they happen, (there is) certainly no great urgency to raise rates at the moment.”

He also pointed to an overall benefit from the bottoming of oil prices, which have been declining since mid-2014, saying real wages have increased at their fastest rate in nearly 15 years.

He added: “A lot of that has to do in the drop in oil prices.

“That’s boosted consumption and UK growth overall.”

Earlier this week, BP revealed it will shed 3,000 jobs, on top of 4,000 posts previously announced, after reporting a loss of £3.6bn.

Meanwhile, Shell has confirmed it will cut 10,000 positions after suffering a sharp fall in full-year earnings.

The companies, alongside many of their market rivals, have had to make changes to counter the falling price of oil.

A barrel of crude oil today (Friday, February 5) stood at about $34.50 (£24) a barrel, compared to highs of more than $100 18 months ago.