UK workers have suffered the biggest declines in their spending power over 20 years Prices keep going up.
Average real wages – which account for inflation – fell by 3% between April and June compared to the same period last year, according to Office for National Statistics figures published on Tuesday.
“The real value of wages is falling. Excluding bonuses, it is still falling faster than at any time since comparative records began in 2001,” said Darren Morgan, director of economic statistics at the ONS. Tweet.
Regular wages (excluding bonuses) rose by 4.7% between April and June, the ONS said, but workers were worse off as prices rose faster.
Inflation rose to 9.4%, a 40-year high, which shocked the Bank of England. Increase the interest rate six times From December, and prices are expected to rise further later this year.
On Tuesday, data firm Kantar said UK grocery price inflation had reached 11.6% over the past four weeks, the highest level in 14 years of tracking the data. Average annual shopping bills have risen by £533 ($640).
Energy bills have skyrocketed — the average annual bill has already arrived 54% increase this year Reaching around £2,000 ($2,410) – to millions of Britons The cost of living crisisforces many to choose”heating or eating.”
Next pain is on the way. Annual energy bills could rise for millions of households £5,000 ($6,000) next springAccording to estimates from research firm Auxilione.
“As real wages fall, the pressure on low-income households increases. It’s not fair that people are increasingly forced to make impossible decisions about which essential items to give up,” the Joseph Rowntree Foundation, an anti-poverty charity, said in a statement on Tuesday. Tweet.
In recent months UK workers have been clamoring for pay rises to manage the squeeze. Thousands of railway workers in June went on strike A further walkout is planned this week, demanding that their salaries be increased in line with inflation.
On Tuesday, thousands of check-in staff at British Airways won an average 13% pay rise after threatening to go on strike.
United, the workers’ union, said the increase would help employees offset wage cuts they took during the pandemic.