Pay cut for millions of workers as real wages fall 2.7% – what it means for your money

MILLIONS of workers are facing a cut to pay as inflation eats into household earnings.

New figures released today by the Office for National Statistics (ONS) show that regular pay in real terms fell by 2.7%.

It’s slightly smaller decrease than the biggest ever drop in April to June of 3%, but it’s still one of the largest falls seen since records began in 2001.

Data from the ONS revealed inflation hit a 41-year high of 11.1% in October.

Prices are rising at a faster rate than pay, which means people’s incomes are squeezed.

It’s a pay cut in real terms as wages are going up, and they don’t match the rate of inflation – which means people are effectively worse off.

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