What’s Causing the Pay Freeze?
Rising inflation, the impending Brexit negotiations and the fallout from the general election are contributing to an unprecedented squeeze on UK pay according to recent statistics.
The pay squeeze looks set to be longer and deeper than many originally expected, as there is no sign of pay matching the pace of inflation any time soon. The Office for National Statistics (ONS) has announced that the consumer price index has increased to 2.9% for the year to May, up from 2.7 per cent for the year to April and the highest level it has been in nearly four years.
Meanwhile, nominal pay has grown just 2 per cent on average over the last three years, while real pay growth fell by 0.5 per cent in the three months to April.
There have been calls for greater fairness – both for pay and how workers are treated. Flexibility has been a catalyst for business investment and innovation and offering greater flexibility in the way that employees are engaged may help improve productivity and as a result, earnings.