Cost of Living Crisis: Wages plummet at a record 3% as bills skyrocket

Official figures show that real wages have fallen at a record rate over the past 12 months as the UK cost-of-living crisis hit and inflation slashed the value of workers’ wages.

Wages including bonuses fell 2.5 percent after accounting for the impact of rising prices, while regular wages fell 3 percent, the Bureau for National Statistics said.

Wages have risen in cash terms but have been dwarfed by rising costs of gas, electricity, fuel, food and other commodities, which have pushed headline inflation to 9.4 percent.

ONS Director of Economic Statistics Darren Morgan said: “The number of people in work increased in the second quarter of 2022, while the overall unemployment rate and the rates of people not working or looking for a job have changed little.

“Meanwhile, the total number of hours worked per week appears to have stabilized slightly below pre-pandemic levels.

“The real value of wages continues to fall.

“Barring bonuses, it’s still falling faster than at any time since comparable records began in 2001.”

The number of employed workers in the UK rose by 73,000 to 29.7 million between June and July, the ONS said.

Despite the unprecedented fall in real wages, Chancellor Nadhim Zahawi claimed the figures showed the labor market was in a “strong position”.

He added: “This underscores the resilience of the UK economy and the fantastic companies that are creating jobs across the country.

“While there are no easy solutions to the cost of living pressures people are facing, we are providing assistance where we can.

Liberal Democrat finance spokeswoman Sarah Olney MP said: “A cost of living disaster is hitting families and yet government is nowhere to be found.

“This zombie government has no plan and is failing our country. People can no longer wait for the Conservatives to have their horror show leadership contest.” Cost of Living Crisis: Wages plummet at a record 3% as bills skyrocket

Dais Johnston

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