Jump in UK wages fails to keep pace with cost of living
Britain’s cost of living crisis moved into its fourth consecutive month in February despite a jump in wages and a fall in unemployment to just 3.8%, its lowest level since 1974.
The Office for National Statistics said average earnings growth of 5.4%, including bonuses, failed to keep pace with a 6.2% rise in the consumer prices index in February, while for those who missed out on a bonus the situation was even worse after average wages increased by only 4%.
The government is under pressure to increase its support to households and businesses after a surge in energy costs that has pushed inflation to its highest level in 30 years.
Millions of families have seen their living standards fall since prices began to rise in November after global energy shortages pushed the price of gas to a record high.
The minister for employment, Mims Davies, said the fall in unemployment to the lowest point in almost 50 years showed the government’s efforts to increase levels of employment was working.
But she acknowledged that it was “a difficult time for many workers and families”.
She said: “We’re doing everything we can to help, with our Way to Work scheme which is supporting people coming through the doors of our Jobcentres to move into better-paid, higher-skilled work. As well as increasing the national living and minimum wage, all backed up by over £22bn of targeted investment.”
Labour’s Treasury spokesperson, Pat McFadden, said: “Today’s figures show that Conservative choices are leaving real wages squeezed and people worse off.
“At a time like this, Rishi Sunak could have chosen a one-off windfall tax on huge oil and gas company profits to cut household energy bills by up to £600. Instead, he’s decided to make Britain the only major economy
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