The latest figures from the Office for National Statistics show that:
- Growth in average total pay (including bonuses) and regular pay (excluding bonuses) among employees is sitting at 6.4%.
- For regular pay this is the strongest growth rate seen outside of the coronavirus pandemic period.
- However, regular pay in real terms fell by 2.6% as prices continue to rise faster than pay as a result of the cost of living crisis.
CEO of RIFT Tax Refunds, Bradley Post, commented: “On the face of it, a topline boost to our earnings is a positive. But in the current economic climate the unfortunate reality is that we’re simply worse off in real terms when it comes to just how far our income can stretch.
‘The cost of living crisis continues to put a squeeze on our finances and it’s this increase in prices that is outpacing wage growth and essentially resulting in a pay cut for many households.”