Recent figures from the Office for National Statistics (ONS) show growth in average total pay (including bonuses) was 4.3% and growth in regular pay (excluding bonuses) was 3.7% among employees in October to December 2021. This means UK wage growth continues to lag behind the rising cost of living.
In real terms (adjusted for inflation), in October to December 2021, total and regular pay fell in the year at negative 0.1% for total pay and negative 0.8% for regular pay.
Single-month growth in real average total weekly earnings for December 2021 increased 0.1% on the year because of an increase in bonus payments compared with December 2020; whereas the single-month growth in real average regular weekly earnings fell in the year in both November 2021 and December 2021, at negative 1.0% and negative 1.2% respectively.
Average total pay growth for the private sector was 4.6% in October to December 2021, while for the public sector, it was 2.6%; all industry sectors saw growth, with the finance and business services sector seeing the largest growth rate at 8.1% following an increase in bonus payments compared with December 2020.
Wages may be slightly up, they probably are not up enough to compensate for the added costs and tax rises.
Please talk to us about planning ahead. With some help you may be able to make your money work harder for you and reduce the amount the taxman can take.
Your financial plans may need a fresh look, and you may need an expert to help you. We are ready to provide all the help you need. For more information and to discuss your tax affairs in further detail, contact Neal Groves or your usual Beavis Morgan Partner.
See: Average weekly earnings in Great Britain – Office for National Statistics (ons.gov.uk)