You are here: Home - Household Bills - News -

Weekly earnings beat inflation for fourth month in a row

Written by:
Earnings continue to outpace inflation, rising 3.3% in the three months to October

This was the biggest rise since November 2008. The UK’s average salary is now £25,740 and the number of people in work hit 32.48m, a record high.

The latest inflation figures show the Consumer Prices index up 2.4% on a year ago.

However, unemployment increased slightly – by 20,000 to 1.38 million as the UK population continued to rise. This was driven by a rise in the number of unemployed men, which rose 27,000, while the number of unemployed women fell by 8,000.

Tom Stevenson, investment  director for Personal Investing at Fidelity International, said: “Finally British workers’ pay is starting to claw back some of the ground it’s given up during the ‘lost decade’ since the financial crisis. After yesterday’s weaker than expected GDP figures and more Brexit uncertainty after Theresa May’s last-minute decision to abort today’s Brexit vote, today’s wage growth figures provide UK workers with a little bit of pre-Christmas cheer. The latest data show wage growth ratcheting up to 3.3% both including and excluding bonuses. This means our pay packets continue to comfortably outstrip inflation.

However, he added that UK workers are not yet out of the woods and the recent steps forward could be reversed by the ongoing political and economic uncertainty: “Britain’s pay growth continues to lag our main competitors since the financial crisis.” Nevertheless, this ‘cocktail of concerns’ should ensure that the Bank of England has little incentive to hike interest rates any time soon, which is good news for borrowers if not for savers.


There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

The savings accounts paying the most interest

It’s time to get your finances in shape, and moving your cash savings to a higher paying deal is a good plac...

Everything you need to know about being furloughed

Few people had heard of ‘furlough’ before March 2020, but the coronavirus pandemic thrust the idea of bein...

The experts’ guide to sorting out your personal finances in 2021

From opting to ‘low spend’ months to imposing your own ‘cooling-off period’, industry experts reveal t...

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

Having a baby and your finances: seven top tips

We’re guessing the Duchess of Cambridge won’t be fretting about maternity pay or whether she’ll still be...

Protecting family wealth: 10 tips for cutting inheritance tax

Inheritance tax - sometimes known as 'death tax' - can cause even more heartache for bereaved families. But th...

Travel insurance: Five tips to ensure a successful claim

Ahead of your summer holiday, it’s important to make sure you have the right level of travel cover or you co...

Money Tips of the Week