Millions of Brits are facing a wage cut amid crippling cost of living crisis

Inflation skyrocketed to nine percent, piling the pressure onto people's finances

Published

Millions of people across the UK are facing a crippling pay cut, amid the rising rates of inflation and insufferable cost of living crisis which is rife across the country.

Date published by the Office for National Statistics (ONS) demonstrated how pay increased by just over four percent in the three months running up to April, excluding bonuses.

Inflation is currently averaging at nine percent, with potential to go rise even higher, mounting the pressure on people's finances.

The data revealed how many across the UK have suffered a savage pay cut, with wages down 2.2 percent on last year, the ONS confirmed.

Inflation peaked at 9 percent recently
Inflation peaked at 9 percent recently
Wages are down 2.2 percent on last year, confirms the ONS
Wages are down 2.2 percent on last year, confirms the ONS

Even if wages increase, if they don't coincide with price in ships, more and more of you're income is being spent on essentials like food and fuel, leaving finances dwindling.

Head of Economic Statistics at the ONS, Sam Beckett, said: "The high level of bonuses continues to cushion the effects of rising prices on total earnings for some workers, but if you exclude bonuses, pay in real terms is falling at its fastest rate in over a decade."

Figures released by the ONS showed the average salary went up by 4.2 percent when inflation was at 7 percent.

Despite wage cuts, unemployment levels are at its lowest levels for 50 years, with job vacancies peaking at a record 1.3 million.

Ms Beckett said: "Today’s figures continue to show a mixed picture for the labour market.

"While the number of people in employment is up again in the three months to April, the figure remains below pre-pandemic levels.

"Moreover, although the number of people neither in work nor looking for a job has fallen slightly in the latest period, that remains well up on where it was before Covid-19 struck.

"At the same time, unemployment is close to a 50-year low point and there was a record low number of redundancies.

"Job vacancies are still slowly rising, too. At a new record level of 1.3 million, this is over half a million more than before the onset of the pandemic."