British employers agreed pay increases averaging 5.6% in the three months to April, reflecting high consumer price inflation and a hefty rise in the minimum wage, putting further pressure on the Bank of England to keep raising interest rates
Incomes Data Research said the median pay settlement awarded by major British employers had increased to 5.6% in the three months to April, the highest in records dating back to 2005 and up from 5.0% in the three months to the end of March.
The IDR's measure of median pay rises for both the private and public sector had been steadily increasing from an already above-average 4.0% in April last year due to the surge in the cost of living and inflation, Woolacott said. "Pay rises in excess of 6% are common across the private sector as inflation remains elevated.... The recent uplift in the National Living Wage has also influenced the rising median," Woolacott said.
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