MILLIONS of workers are facing a pay cut after real term wages fell by 3%.
The latest figures from the Office for National Statistics (ONS) reveal household incomes are still being hammered by high inflation.
Workers are facing a real-terms pay cut
Pay went up by 5.8%, including bonuses, while pay excluding bonuses increased by 6.7% between January and March.
But inflation hit 10.1% in March, after falling slightly from 10.4% the month before.
That means people’s pay packets have fallen in real terms, when factoring in other living costs such as food and energy.
Average wage increases for the private sector were 7% in January to March 2023 and 5.6% for the public sector.
The finance and business services sector saw the largest wage boost of 8.8%, followed by the manufacturing sector at 6.3% and construction sector at 6.2%.
Jeremy Hunt, the chancellor, said: “It’s encouraging that the unemployment rate remains historically low but difficulty in finding staff and rising prices are a worry for many families and businesses.
“That’s why we must stick to our plan to halve inflation and help families with the cost of living, while delivering our childcare reforms and supporting older people and disabled people who want to work.”
It comes as new figures from the ONS reveal there were over one million job vacancies on average between February and April 2023.
This was down 55,000 on the previous quarter.
What does it mean for my money?
The main concern when workers see a “real terms” fall in their salary is that it is not keeping pace with the cost of living.
This is because energy, fuel and food prices have all soared in recent months.
It means many are struggling to keep up, or have already fallen behind on their bills.
What help is available?
If you are struggling there’s support on offer.
The Government is handing out three cost of living payments to millions, worth £900, £150-£300 and £150.
To be eligible for the £900 payment, households will need to be claiming at least one of the following:
- Income-based Jobseeker’s Allowance
- Income-related Employment and Support Allowance
- Income Support
- Pension Credit
- Tax Credits (Child Tax Credit and Working Tax Credit)
- Housing Benefit
- Council Tax Support
- Social Fund (Sure Start Maternity Grant, Funeral Payment, Cold Weather Payment)
- Universal Credit
The payment has been split into three instalments worth £301, £300 and £299.
The first instalment should be paid to all eligible people by May 17 while the second and third instalments are expected in autumn this year and spring 2024.
Elderly Brits will receive another one-off £150-£300 top up to their Winter Fuel payment later this year too.
And millions of people with disabilities will get a £150 payment this summer.
You might also be able to get help via the Household Support Fund.
The help is being distributed by councils in England and what you are entitled to varies depending on where you live.
But, in most cases, you will be in line for support if you are on a low income or benefits.
Beyond this, a number of energy suppliers offer grants to customers who are struggling with their bills.
This includes British Gas, EDF, Octopus Energy and Scottish Power.
Do you have a money problem that needs sorting? Get in touch by emailing [email protected]
Did you miss our previous article…
https://hellofaread.com/money/i-bought-20-jars-from-a-charity-shop-and-now-theyre-selling-for-50000-how-to-spot-a-second-hand-gem/
