TOP earners have seen their pay soar by ten per cent — compared to a one per cent rise for low-income workers.
The contrast emerged as inflation soars and the cost of living crisis continues to bite.
Top earners have seen their pay soar by ten per cent — compared to a one per cent rise for low-income workers
A lot of the high earners are concentrated in the City of London in finance, professional and technical industries.
Pay in these sectors has seen strong growth in 2022, with year-on-year increases in finance and insurance peaking at 19.8 per cent in February.
Workers in these sectors are also able to enjoy fat bonuses.
The pay findings were made by the Centre for Economics and Business Research.
They come as the UK braces itself for recession as we expect to face the longest downturn in the economy since 2008.
The CEBR said that following higher pay growth over the past couple of years, the lowest earners’ pay has flatlined — coinciding with record rises in the cost of essentials.
Over the first half of this year, inflation has shot up from 5.5 per cent to 9.4 per cent.
The CEBR has been saying for months that “additional support which is very narrowly targeted at the poorest households (including those in work) will be necessary if they are to avoid worsening hardship”.
It said: “The wage data analysis adds further merit to that argument.”
And it added: “Measures such as uprating benefits in line with current rather than earlier inflation readings should again be considered as for many it really is the worst of times.”