21st October 2014
Employees of FTSE 350 companies have seen a monthly wage rise of just 8p in the past year, new figures reveal.
Inflation may be falling, but take-home salaries are barely improving at all for millions of employees according to VocaLink, the company which processes salary payments for 90% of the workforce.
It found that the average worker’s real monthly wages have increased by just £0.08p over the three months to September, compared with the same period a year ago.
While inflation-adjusted monthly wages grew in the manufacturing industry by £15.58 over the last year, or 0.9 per cent increase in real terms, other sectors did not fare as well.
Workers in the services sector have seen their wages drop by 0.1 per cent in the past 12 months, taking having an average of £1.43 off monthly pay packets.
Public sector workers saw a 0.7 per cent drop in their monthly salaries, equivalent to a fall of £11.12.
David Yates, chief executive of VocaLink, said: “Although there was a big fall in inflation in September, overall take home pay growth is slow, so there haven’t been any notable gains for UK workers.
“However we have seen the biggest ever fall in unemployment in history and this, combined with falling inflation, suggests that we could see take home pay rise further over the coming months.”
Speaking ahead of a march on Saturday by tens of thousands of workers supporting the TUC’s “Britain needs a Pay Rise” campaign, general secretary Frances O’Grady said:
“The Bank of England’s Chief Economist is clear that workers have faced the longest and deepest squeeze in their wages since the middle of the nineteenth century.
“And what is worse is that those in the middle and at the bottom have suffered while those at the top have soared ahead with a 20 per cent wages increase since 1997.
“Britain’s workers have every right to be angry, especially now they have been locked out of the economic recovery as the proceeds go to tax cuts for the rich and boardroom greed.”