Average UK wages fall as prices rise

Pay increases are failing to keep pace with the rising cost of living, the Office for National Statistics (ONS) has said.

The latest figures show that after taking inflation into account, average pay excluding bonuses fell by 2.2% in real terms in the year to February to April 2022.

Average pay including bonuses rose by 0.4% in the same period.

“The high level of bonuses continues to cushion the effects of rising prices on total earnings for some workers, but if you exclude bonuses, pay in real terms is falling at its fastest rate in over a decade,” said ONS head of economic statistics Sam Beckett.

Adjusted for inflation, regular pay has fallen by around 1.6% for private sector workers and 4.5% for those in the public sector.

UK household budgets are being squeezed by record fuel and energy costs and rising prices in the shops, with inflation at the highest level since the early 1980s.