UK workers are seeing their wages rise at the fastest rate in more than 20 years, but the increase still lags behind inflation.
In the year to July to September 2022, average total pay (including bonuses) increased by 6.0% and regular pay (excluding bonuses) increased by 5.7%.
This is the strongest growth in regular pay recorded since 2000, excluding the pandemic, the Office for National Statistics (ONS) said.
However, inflation is at a 40-year high of 10.1% after a sharp rise in energy and food prices, driven by the war in Ukraine.
Taking inflation into account, average pay including bonuses fell by 2.6% and regular pay fell by 2.7%.
“With average total pay… not keeping pace with inflation, some people are looking to work more hours or take on an additional role to supplement incomes to keep pace with rising costs,” commented Gareth Vale, director of operations at employment agency ManpowerGroup, quoted by BBC News. “Employers will need to keep an eye on this in terms of staff wellbeing and the impact it could have on overall productivity and growth.”
On Thursday, Chancellor Jeremy Hunt will deliver his Autumn Statement setting out plans to get the economy back on track, with spending cuts and tax rises expected.
The Times reported on Tuesday that Hunt will announce a significant rise in the national living wage as well as new cost-of-living payments targeted at the poorest households.
