Real wages have fallen by £68 a month since last year, new labour market figures have revealed.
Workers’ pay, excluding bonuses, fell by 1.9 per cent in the year to March 2022 – the sharpest drop since 2013.
The stark figures come a day after Bank of England chief Andrew Bailey told workers to “think and reflect” about asking for pay rises. Bailey, who earns £575,000 a year, warned salary hikes could make inflation worse.
It is the UK’s highest earners who have seen the biggest pay rises – with finance workers earning 25 per cent more in March 2022 than in December 2019, and soaring bonuses meaning overall pay rose by 1.4 per cent when adjusted for inflation.
The disparity has prompted warnings over who exactly has benefitted from the pandemic.
The TUC’s analysis of the figures showed the squeeze has been particularly acute for those in the public sector, who have seen real wages fall by £131 a month compared to a year ago.