MILLIONS of Brits are facing a cut to pay in real terms as inflation is outpacing wage growth.
Official data published today by the Office for National Statistics (ONS) shows pay increased by 4.2% in the three months to April, excluding bonuses.
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But inflation is running at 9% and could go even higher piling pressure on people’s finances.
It means in real terms it’s a pay cut, with wages down 2.2% on last year the ONS said.
Even when wages go up, if they don’t keep up with prices in shops then you’re spending more of your income on essentials like food and fuel, leaving your finances squeezed.
Sam Beckett, head of economic statistics at the ONS said: “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.”
Last month figures from the ONS showed the average salary went up by 4.2% when inflation was at 7%.
The latest wage data also reveals unemployment is at…
