Record Gap Between UK Pay And Inflation
In the first quarter of 2022, UK pay rises remained flat while inflation continued to rise.
According to new data from XpertHR, the median basic pay increase in the three months to the end of March 2022 was worth 3%. This figure remains unchanged from the previous two rolling quarters.
Pay increases stand at their highest level since December 2008, but they now lag six percentage points behind the retail price index (RPI) which is currently at 9%.
The gap between UK pay rises and inflation is now at a record high, with the gap at its largest since XpertHR’s record began in April 1984.
“Two successive months of stagnant pay settlements set against ever-increasing inflation will give cause to concern for those struggling to contend with the worsening cost of living crisis,” commented Sheila Attwood, XpertHR pay and benefits editor.
“While the current 3% median pay award is notably higher than the 1.2% recorded by XpertHR a year ago, the inflation rate was dramatically less than where it stands today. As a result, a deepening gulf between pay and inflation continues to develop, to the detriment of workers’ finances.”