WAGES have gone up by 5.4% but a boost to pay packets still fails to keep pace with inflation under a cost of living crunch.
The average total pay went up by 5.4% between December 2021 to February, according to official figures from the Office for National Statistics.
Regular pay growth – which excludes bonuses – went up 4% over the same period.
But that has still failed to keep pace with soaring inflation, which has hit 6.2% – a high not seen in decades.
The ONS said with this in mind, real terms growth in total pay was 0.4%, while regular pay fell by 1%.
It added that "strong bonus" payments was the main driver behind the growth in total pay.
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It means that wages still have not increased enough to meet soaring bills from clothes and food to fuel and energy.
ONS director of economic statistics Darren Morgan said: "While strong bonuses continue to mitigate the effects of rising prices on people's total earnings, basic pay is now falling noticeably in real terms."
Inflation is expected to rocket even further later in the year.
The government's Office for Budget Responsibility predicts that inflation will hit a 40-year high of 8.7% – which will clobber incomes even more.
Meanwhile, the UK's unemployment rate fell to 3.8%. with the number of job vacancies reaching a record high to 1.29million.
But Mr Morgan said that while vacancies are at a record high, it rose at its "slowest for nearly a year".
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The number of workers on payrolls also went up by 35,000 in March to 29.6million.
What it means for your finances
The main cause for concern for workers is that pay is not keeping pace with the rising cost of living.
It means even with a pay rise of 4%, you'll still be earning less in real terms than a year ago because prices are going up at a faster rate.
More to follow…
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