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Average pay in UK grows more than inflation

Data from the Office for National Statistics shows average pay in the UK grew more than inflation for the first time in five years.

Wages excluding bonuses rose by 1.3% in the year to September, just a tenth higher than the 1.2% Consumer Prices Index inflation rate. If bonuses are included, earnings rose by 1% over the same period.

The ONS also said that UK unemployment in the July-to-September quarter was down 115,000 on the previous quarter, cutting the total to 1.96 million.

Pay has fallen behind inflation since the recession, but in recent months earnings have been rising as the pace of price growth has slowed down, suggesting that the recovery is finally showing on household budgets.

The deputy governor of the Bank of England said he expected this trend to continue well into next year, with the inflation rate potentially falling below 1% and earnings growing by around 3%.

The ONS data also shows a rise in employment of some 112,000 in the latest quarter to 30.7 million, the highest since records began in 1971. Employment Minister Esther McVey said: "Record numbers of people in work means more people with the security of a regular wage who are better able to support themselves and their families.

"With the vast majority of the rise in employment over the last year being full-time, it's clear that thanks to the government's long-term economic plan, we are helping businesses to create the jobs that people need."

If you’d like information on any aspect of employment law for your business, or other areas of commercial law, please contact Lawson-West Commercial on 0116 212 1000.

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