According to a new study, the general cost of living in the UK is starting to go up. Despite this fact, most Brits have not had any kind of pay raise this year. In fact, barely a quarter of workers in the UK have seen any increase to their pay. Of course, the really scary stat is the fact that most people have seen their wages cut.
According to the Chartered Institute of Personnel and Development (CIPD), almost three in five employees in the UK have seen their pay frozen since back in January of this year. Around one in 20 have seen their base pay cut. Of course, it is the public sector that is being affected by this development the most. About 28 percent of more than 2,000 people who were questioned actually received a pay increase. Answers from the remaining six percent of people did not even indicate whether their pay had risen, fallen or stayed the same. The people who have seen their wages increase have not seen too big of an improvement. Most people that have seen a pay increase have noted that it was about a 3 percent increase in their earnings. Although any kind of pay increase is nice, a 3 percent increase does very little to counter the increase in everyday living. The survey went on to show that people between the ages of 25 and 34 are the most likely to receive some kind of pay increase. The people aged 55 and higher are the second most likely.
Of course, there are some areas of the UK that have been worse hit than others. For example, the survey said that the North East is actually the "pay freeze" capital of the UK. This is because three quarters of workers in this area reported that their salaries have not increased since the start of last year. Over in the West Midlands, some 66 percent of people have received no pay rise this year at all. Overall, it was the workers in Scotland that were the most likely to have received some kind of salary boost this year. The performance and rewards adviser for the CIPD, Charles Cotton, said that even those who are lucky enough to have a pay increase will find it below the current cost of living. Inflation figures, which will come out later this month, will highlight growing pricing pressures, which are very likely to continue for some time.
He went on to say that they will see some increase in the number of private sector workers receiving a pay award in the second half of 2011. This goes double for the retail sector, hotel sector, and catering sector. This increase is going to happen as the national minimum wage comes into effect in October. Given that the busiest time for pay awards in the private sector is between January and May, most of these workers who have not received a pay rise will probably not get one at all. Within the private sector, those most likely to have seen their base pay go up in the first six months of this year work in manufacturing and finance.