Despite accelerating wage rises, Britons are getting poorer

With inflation continuing to run hot, people’s pockets are still empty, says James Moore

With inflation continuing to run hot, people’s pockets are still empty (Getty)

Wages are rising at a surprisingly rapid pace, according to the latest official labour market release from the Office for National Statistics. At 7.2 per cent, excluding bonuses, this is the biggest number in 20 years outside the pandemic period (the rate was 7.3 per cent between April and June 2021).

Good news for workers? Only up to a point. With inflation continuing to run hot – 8.7 per cent in the 12 months to April – signs of wages closing the gap ought to be welcomed, but in real terms, wages are still falling.

Adjusted for inflation, pay fell by 1.3 per cent annually for the February-to-April reporting period (this particular dataset uses a three-month term). When bonuses are included, pay fell by 2 per cent.