22nd December 2014
A senior Bank Of England official expects that larger pay rises will be offered to workers in 2015.
Speaking to the BBC’s Radio 5 Live’s Wake up to Money programme, Martin Weale who sits on the Bank’s Monetary Policy Committee, which is responsible for interest-rate setting, said that employers were becoming more confident.
As a result, he believes this should lead onto higher pay packets for employees.
A report on BBC News highlighted that Weale’s comments arrive on the back of a new survey from business group, the Confederation of British Industry (CBI), which found that around half of UK firms plan to expand their workforce next year.
Speaking to the BBC Weale said: “When I go and visit businesses throughout the country, I find that they are talking of pay increases in a way quite different say from what I was hearing early in the year, certainly this time last year.
“I’m getting a more general sense now that people are talking about pay increases which are materially higher than they’d offered in the past, whereas a year ago I would come across quite a few firms saying they were going to have a pay-freeze.”
Notably last week official numbers from the ONS reported that average earnings, excluding bonuses, had risen1.6% from a year earlier, and that unemployment was down by 63,000 to 1.96m.