UK wages hit by soaring inflation

1 month ago 19

WorkersImage source, Getty Images

Regular pay fell at the sharpest rate on record between April and June, official figures show.

Wages - when taking into account rising prices - dropped by 3% on the year, the Office for National Statistics said.

Household budgets are being hit by soaring energy bills as well as higher food and fuel costs in recent months.

The rise in prices has fuelled the UK inflation rate to a 40-year high and figures due out on Wednesday are expected to show a further increase.

Darren Morgan, director of economic statistics at the ONS said the "real value" of pay was continuing to fall.

"Excluding bonuses, it is still dropping faster than at any time since comparable records began in 2001," he said.

The ONS said growth in regular pay, excluding bonuses, was 4.7% in April to June 2022. Excluding the pandemic, it is the fastest growth in 15 years. However, after taking into account inflation over the year, wages fell by a record 3%.

The rise in the cost of living has prompted workers and unions across several industries to call for pay rises - with some, such as rail workers, going on strike.

Separately, the ONS also revealed that quarterly job vacancies fell for the first time since 2020. Between May and July, they dropped by 19,800 to 1.274 million. Though the ONS points out that since vacancies fell to an all-time low between April to June 2020 in the beginning months of the Covid pandemic, they have increased by 945,000.

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