UK real pay falls at fastest rate in two decades

Inflation hits wages

clock • 2 min read

UK real wages, which reflect the power of employee pay after accounting for inflation, declined by an annual 3% in the last quarter, the lowest in two decades as inflation continues to soar. 

The figures released by the Office for National Statistics today (16 August) show that while average pay, excluding bonuses, rose by 4.7% in the April to June period, the cost-of-living is increasing at a rate that surpassed wage growth. "The real value of pay continues to fall. Excluding bonuses, it is still dropping faster than at any time since comparable records began in 2001," said Darren Morgan, ONS director of economic statistics.  The labour UK market remains tight, however. The unemployment rate of 3.8% was relatively unchanged over the month, with the employment rate still b...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Economics / Markets

Gilt yields fall after Donald Trump backs down in 'tariff war'

Gilt yields fall after Donald Trump backs down in 'tariff war'

US president pauses most additional tariffs

Jonathan Stapleton
clock 10 April 2025 • 2 min read
Reeves defends yearly Budget to avoid 'constant chopping and changing'

Reeves defends yearly Budget to avoid 'constant chopping and changing'

Treasury Committee scrutinises chancellor on Spring Statement

Isabel Baxter
clock 02 April 2025 • 3 min read
Five key takeaways from the Spring Statement 2025

Five key takeaways from the Spring Statement 2025

OBR growth, ISA reforms and defence

Sorin Dojan
clock 27 March 2025 • 4 min read