Average pay rises are being outpaced by inflation, which is growing at a much faster rate.
The Office for National Statistics (ONS) has reported that regular pay, excluding bonuses, grew by 4.7% over the three months to June. However, this comes after consumer price index (CPI) inflation hit a new 40-year record of 9.4% in June and is expected to peak at around 11% later this year.
As a result, wages have fallen by 3% in real terms just as household budgets are being hit by soaring energy bills, higher food and fuel costs.
The gap between pay growth and inflation is the widest since records began more than 20 years ago.
Kenneth Gibson MSP said:
“These figures once again confirm that the pinch people are feeling is real and impactful.
“The ONS’ findings are extremely disconcerting as there is a real risk that wages are left far behind if the Tory Government continues to do nothing to stymie inflation, help households with concrete measures, and hold energy companies to account.
“The UK Tory Government must act now to ensure October’s energy price rise is cancelled, VAT on fuel is removed for at least the foreseeable future, and a windfall tax is urgently put in place on those companies making record profits from the energy crisis.
The Tories need to take the big energy firms to task NOW.”