Wages drop to lowest level in over a decade

The Office for National Statistics (ONS) has announced a drop of 2.2% in UK regular pay between February and April compared to last year.

A growth in nominal wages was observed with a rise of 6.8% when including bonuses and 4.2% when excluding bonuses for the same time-period.

A boost in bonus payments has kept workers’ total pay positive with a 0.4% growth.

However, when accounting for the inflation rate and British household’s purchasing power, employees’ real wages are falling.

Sam Beckett, head of economic statistics at the ONS, stated:

“If you exclude bonuses, pay in real terms is falling at its fastest rate in over a decade

“The high level of bonuses continues to cushion the effects of rising prices on total earnings for some workers.”

The inflation recorded at a 40-year high, prompted by the effects of the pandemic and the war in Ukraine has increased the cost of everyday living.

Ofgem, the energy regulator, has predicted that the general household energy bill could reach £800 by October, averaging at £2,800 annually.

In April, bills had already risen by £700 on average.

TUC secretary, Frances O’Grady, said:

“Millions of workers are being forced to choose between paying their bills or feeding their families. That isn’t right.

“We urgently need action to get people the pay rise they deserve. That means boosting the minimum wage, a real public sector pay rise, and the government supporting – not attacking – unions who are campaigning hard for fairer pay.”