Total pay (including bonuses) in Great Britain has risen 1% year on year, according to research by the Office of National Statistics (ONS) reveals.
Its UK labour market research report also found that for July to September 2014, regular pay (excluding bonuses) for staff in Great Britain was 1.3% higher than a year earlier.
The report also found that:
- Average regular pay (excluding bonuses) for workers in Great Britain was £455 per week before deductions such as tax.
- The average total pay (including bonuses) for staff in Great Britain was £481 per week before deductions such as tax.
- Annual inflation stood at 1.2% in September 2014, down from 1.5% in August.
- Higher annual growth rates were recorded in September 2014 as opposed to August 2014, across a range of industrial sectors for both regular and total pay.
Richard Troue, head of investment analysis at Hargreaves Lansdown, said: ““We are seeing some signs that wages are starting to rise faster than the cost of living.
”Earnings in Britain were 1.3% higher at the end of September than a year earlier. The latest figure for Consumer PRices Index inflation was 1.2%, meaning wages are finally growing in real terms for the first time in five years.
A lack of wage growth has been the missing link from the otherwise robust economic recovery Britain has experienced. However, the recent trend has been for wages to show very modest, below inflation growth and one month in isolation is not enough to declare a turnaround.
[However], even modest wage growth could ease the pressure on consumers and households further, putting more pounds in their pocket in the run up to Christmas.”