21st August 2015
Annual pay increases have remained static at 2% and show little sign of rising soon.
A survey from human resources services company XpertHR show wage inflation was at 2% in the three months to July and British wages have increased more slowly in recent years than before the financial crisis. A move back towards wage increases will serve as a nod to the Bank of England to tighten policy.
In the three months to July half of pay settlements were worth between 1.6% and 2.6% and the median award was 2%. The survey showed that employers felt they were under no pressure to increase wages, despite higher wages helping with recruitment and retention.
‘Employers are either unable to, or see no need to, increase wages by any more than 2%,” said Sheila Attwood, pay and benefits editor at XpertHR.
While the report is in line with other surveys that suggest wages are picking up again, general secretary of the TUC Frances O’Grady said the increases were not good enough.
‘With top bosses now earning over 180 times more than the average full-time employee it is high time that employers paid their staff higher wages,’ she said.
‘But a sustained pay recovery will only come with a higher productivity recovery. The UK desperately needs a stronger and fairer economy that works for everyone.’