Pay rises for the UK in 2018
British workers are set to receive their biggest pay rises since 2008 this year. According to a Bank of England survey, the increases are a result of the higher minimum wage, inflation and reluctance from European workers to work in Britain.
Britain’s minimum wage for those aged 25 and over is due to rise by 4.4% in April to £7.83 an hour, while pay for some younger workers will rise by over five per cent.
The survey also found that firms plan to offer average pay settlements of 3.1% – the highest since 2008, and an increase on the 2.6% last year. However, inflation is also a cause for concern, as businesses also reported cost pressures from higher mandatory pension contributions, a lack of foreign workers and difficulty recruiting and retaining staff according to Reuters.
Inflation hit its highest in over five years in late 2017, following the Brexit vote, which has impacted the cost of imports. Last week the Bank of England forecasted that annual pay growth would reach 3% by the end of 2018 – up from 2.5% in the year to November 2017.