Tuesday, August 16, 2022

Real Pay Falls

 ‘Real’ pay – adjusted for inflation – fell by a record 3% in the quarter to June as the cost of living crisis deepened.

Figures from the Office for National Statistics showed average total pay, including bonuses, grew by 5.1% between April and June while regular pay excluding bonuses grew by 4.7%.

However, when adjusted for inflation (which reached a 40-year high of 9.4% in June), total pay fell 2.5% and regular pay fell by 3%, the fastest decline since comparable records began in 2001.

Ben Harrison, director of the Work Foundation at Lancaster University, a think tank for improving work in the UK, said: "Ahead of next week’s energy price cap announcement, there is more bad news for workers as real wages fell by a record 3% on the year. With inflation at 9.4%, and the Bank of England predicting it will peak at 13% in early 2024, people across the UK are facing more tough decisions as their regular pay fails to keep pace with rising prices. The six million workers in severely insecure jobs will be hardest hit and are already running out of options. Many have already tried to find more hours work and cutback spending but continue to face great uncertainty."

The average household’s annual grocery bill is now set to soar by £533 to £5,128, the equivalent to £10.25 every week.

(1) UK real pay falls by record 3%, as job vacancies also decline – business live (theguardian.com)

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