Photograph courtesy of 401 Calculator
Average earnings for UK workers have risen more slowly than inflation for the fifth year in a row according to the latest figures from the Office of National Statistics (ONS).
Average pre-tax pay increased 2.1% in the year up to April 2013 to reach £27,000, but the Consumer Price Index (CPI) also rose 2.4%, meaning that people can buy less with their money.
Earning vs CPI (Inflation) 2012-13. ONS
Following continual year on year increases in living standards where pay rises outpaced inflation between 1998 and 2008, the financial collapse is still taking its toll on workers across the UK as inflation continues to outpace wage rises.
The earnings increase is the largest in five years, but hidden within that rise is a growth in disparity between male and female wages, where the gap widened to 10%. The differences between the top and bottom earners has also widened over the last year, with full-time employees earning less than £7.28 per hour increasing 1.5%, as well as full-time employees earning more than £27.02 per hour increasing by the same percentage.
