Category Archives: Pay

UK workers must accept lower pay deals to help beat inflation, says Bank ratesetter

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Deputy governor Sarah Breeden also says firms must rein in profits as there is ‘some way to go’ to meet 2% inflation target

Victory in the war on inflation will require British workers to accept lower pay deals and companies to rein in their profits, a senior Bank of England policymaker has said.

Sarah Breeden, one of the central bank’s four deputy governors, said there was still “some way to go” before inflation would fall back to the 2% target set by the government for the Bank to achieve on a sustainable basis.

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How Labour’s plan for ‘fair pay deals’ looks to solve UK social care crisis

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Underfunded, overstretched sector to become testing ground for battle against low pay but critics say policy is weak and vague

“My sister is a care worker. She was a care worker during the pandemic. Fourteen-hour shifts, often overnight. Unimaginable pressure. And the reward? A struggle every week – and I mean every week – just to make ends meet.”

So spoke Keir Starmer last month, drawing on experience close to home in his party conference speech to underline his determination to overhaul the cash-strapped social care sector.

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Gender pay gap for UK women aged 40 and over ‘will not close till they are pensioners’

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Equal Pay Day report from Fawcett Society blames lack of flexible working in well-paid high-quality jobs

UK women aged 40 and older will not experience the closure of the gender pay gap until after they reach state pension age, according to a report by the Fawcett Society.

The Equal Pay Day 2023 report, “Making flexible working the default”, found that on average working women take home £574 a month less than men – or £6,888 a year.

Forty per cent of unemployed women said access to flexible work would enable them to take on paid work. Almost a third of unemployed men said the same.

Women were significantly more likely to report working part-time (27%) compared with men (14%).

About 77% of women agreed that they would be more likely to apply for a job that advertised flexible working options.

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Autumn statement: Jeremy Hunt looks to cut UK taxes and ‘turbo-charge growth’

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Amid less gloomy OBR forecasts the chancellor is expected to take first steps towards cutting personal taxes

Jeremy Hunt will announce 110 measures to boost Britain’s stagnant economy and bow to demands from anxious Tory MPs for tax cuts when he delivers his second autumn statement on Wednesday.

In one of the last set-piece economic events before the general election, the chancellor will pledge to “turbo charge” growth while taking the first steps to cut personal taxes after recent sharp increases.

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Real living wage rises to £12 an hour as cost of living crisis continues

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The half a million workers whose employers pay the voluntary real living wage will earn £3,000 a year above the minimum wage

Almost half a million workers in the UK whose employers are signed up to pay the voluntary real living wage are in line for a pay rise to at least £12 an hour, taking their annual wage to £3,000 a year above the government’s minimum wage.

The Living Wage Foundation said employers in London that are part of the scheme will pay an enhanced rate of £13.15 an hour to cope with the extra costs of living in the capital.

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Holiday pay ruling ‘entitles many UK workers to thousands in unfairly deducted wages’

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Unison says decision affects other types of employee payments and is ‘victory for underpaid workers’

Many UK workers could be entitled to thousands of pounds “unfairly” deducted from their pay after a supreme court decision, according to unions.

The judgment relates to a long-running row about holiday pay but Unison, which participated in the case, said the ruling affected all other types of payment to employees and called it a “victory for underpaid workers”.

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Exploitation of care workers in England is ‘appalling’, says government adviser

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Brian Bell says ministers have let social care become reliant on low-paid and vulnerable foreign workers

Ministers have allowed England’s creaking social care system to become too heavily reliant on low-paid foreign workers who are vulnerable to exploitation, the government’s migration adviser has warned.

In a strongly worded intervention, Prof Brian Bell, who has just been reappointed by the home secretary, Suella Braverman, as chair of the migration advisory committee (MAC), called the government’s tacit acceptance of exploitation in the sector “appalling”.

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Record UK pay growth adds to pressure for interest rate rise

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Jeremy Hunt and Bank of England’s Andrew Bailey call for wage restraint to help curb inflation

Wages increased at a faster rate than expected in May, putting pressure on the Bank of England to push up the cost of borrowing at its next meeting in August.

Earnings growth hit 7.3%, driven by the strongest rise in private sector pay growth outside the pandemic period of 7.7%, the Office for National Statistics said.

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Union fury at reports Sunak might overrule some public sector pay rises

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Recommendations from independent pay review bodies could be rejected by PM if he deems them unaffordable

Unions have expressed outrage over reports the prime minister plans to block public sector wage increases owing to fears about pushing up UK inflation, which remains worse than in other leading economies.

Recommendations from the independent pay review bodies could be overruled by Rishi Sunak if they are considered unaffordable, the Times reported, because of concerns they could set off a “wage-price spiral”.

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UK’s best known retailers top list of firms fined £7m over pay breaches

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WH Smith, Marks & Spencer and Argos among more than 200 firms that failed to pay workers legal minimum wage

Some of the UK’s best known retailers including WH Smith, Marks & Spencer, Argos and LloydsPharmacy are at the head of a list of more than 200 companies collectively fined £7m for failing to pay the legal minimum wage.

The businesses were also forced to pay out £4.9m to about 63,000 workers left out of pocket after violations of the rules were uncovered by inspectors at HMRC, varying from breaches related to asking workers to pay for aspects of their uniform to paying the incorrect apprenticeship rate.

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Real value of UK pay continues to slide as inflation bites

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Wage increases in February outstripped by rises in cost of living, as unemployment rate rises

The real value of UK workers’ pay has continued to fall at the fastest rate for more than a decade, as wage increases in February were outstripped by high inflation.

The Office for National Statistics said annual growth in average pay, excluding bonuses, held steady at 6.6% in the three months to February despite a small rise in unemployment and decline in the number of job vacancies.

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Give teachers in England a deal similar to nurses to avoid strikes, says union

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Dr Patrick Roach of NASUWT calls on education secretary Gillian Keegan to reopen pay talks

Ministers could avoid teachers’ strikes in England this summer if they make an improved pay offer as good as that made to NHS nurses, the leader of one teaching union has proposed.

Dr Patrick Roach, the general secretary of the NASUWT union, called on the education secretary, Gillian Keegan, to reopen talks to allow pay negotiations to continue, saying strikes were “not inevitable” if a better deal could be reached.

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Government treating teachers in England with contempt over pay offer, says union

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NASUWT general secretary said ministers ‘not serious about compromising’ in last month’s talks


Ministers are treating teachers in England with contempt if they refuse to renegotiate their “miserable” pay offer, according to a teaching union leader who fears the government wants to “walk away” after only six days of talks.

Patrick Roach, the general secretary of the NASUWT teaching union, said the government insisted on using forecasts of very low inflation next year to justify its pay offer and was “not serious about compromising” during negotiations last month.

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FTSE 100 bosses paid more in three days than average UK worker for whole year

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CEOs pass milestone nine working hours earlier than last year, with pay up 39% on January 2022

The bosses of Britain’s biggest companies will have made more money in 2023 by Thursday afternoon than the average UK worker will earn in the entire year, according to analysis of vast pay gaps amid strike action and the cost of living crisis.

The High Pay Centre, a thinktank that campaigns for fairer pay for workers, said that by 2pm on the third working day of the year, a FTSE 100 chief executive will have been paid more on an hourly basis than a UK worker’s annual salary, based on median average remuneration figures for both groups.

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Zero-hours contracts among over-50s hit highest level recorded

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According to ONS data, there are now nearly 300,000 people aged 50 or over in insecure employment

Zero-hours contracts among the over-50s have reached their highest level since records began, according to new analysis of official government statistics.

There are nearly 300,000 people aged 50 and older with zero-hours contracts, the highest number for this age group since records began in 2013 and almost double the number 10 years ago, from 149,000 in October to December 2013 to 296,000 in July to September 2022.

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UK workers face return to 2006 real-term wages in ‘highly challenging’ 2023

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PwC predicts increase in divorces, slide in house prices and drop in happiness index

British wages next year will fall back to 2006 levels, while 2023 will also bring a slide in house prices and an increase in divorces, according to a forecast that finds the UK is on course to be a less happy place to live.

The consultancy firm PwC said a look ahead to 2023 showed there were few positive indicators, with most measures of the UK’s economic and social performance going into reverse.

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Is the UK really facing a second winter of discontent?

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Comparisons with 1979 are misleading – strikes over pay now are smaller in scale and focus, and stoked by inflation

Britain is facing a winter of strikes, as industrial action on the railways spreads to the health service and other key sectors of the economy. Such is the wave of discontent that more than 1m working days could be lost to disputes in December, the most since 1989, during Margaret Thatcher’s final years in power.

With inflation at the highest rate in 41 years amid the cost of living crisis, it’s not difficult to see why workers are pushing for better pay. Coming after the worst decade for average wage growth since the Napoleonic wars, including deep real-terms pay cuts for many in the public sector, it’s even less surprising still.

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Women £570 a year worse off after 12 years of Conservatives, says Labour

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Analysis of ONS figures suggests average woman’s salary has fallen from £30,250 in 2010 to £29,680 today

Women are £570 a year worse off than they were before the Conservatives came into power 12 years ago and the autumn statement will leave them even worse off, Labour has claimed.

Citing analysis of ONS figures, Labour said that in real terms, the median full-time female worker’s salary has fallen from the equivalent of £30,250 in April 2010 to £29,680.

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CBI urges Jeremy Hunt to relax immigration rules to ease UK staff shortages

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Lobby group says failure to tackle workforce shortages would be highly damaging for the economy

Britain’s foremost business lobby group has urged Jeremy Hunt to use this week’s autumn statement to shake up immigration rules to support companies struggling with chronic staff shortages and a looming recession.

The head of the Confederation of British Industry (CBI) said urgent action was required from the chancellor on Thursday to bolster the economy, including “tough political choices” to allow more overseas workers in Britain as employers struggle with a desperate lack of staff.

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Minority ethnic Britons’ educational success not reflected in pay, study finds

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‘Clear evidence’ of discrimination in terms of salary and careers despite academic progress, IFS study finds

Most minority ethnic groups in the UK have made remarkable progress in educational achievement but “clear evidence” of discrimination remains in their pay and careers, according to a study published by the Institute for Fiscal Studies.

The IFS report found that most of the largest minority ethnic groups obtain English and maths exam results at least as good or better than those achieved by white British students in England, and are more likely than white teenagers to go on to university.

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