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Work Foundation - Largest fall in living standards on record as inflation outpaces wage growth

Ben Harrison, Director of the Work Foundation, responded to the Labour market overview April 2022 released by the Office for National Statistics 

“Today’s statistics shows a mixed picture for the UK’s labour market recovery with employment stationery at 75.5% and unemployment dropping to 3.8%. However, the vacancy rate remains high at 1.3 million, and economic inactivity continues to rise to 21.4%.

“Crucially, workers and job seekers are being hit by the largest fall in living standards on record as inflation outpaces wage growth. Many are struggling to make ends meet as regular pay growth is at 4% (excluding bonuses) but inflation continues to rise, with the Bank of England predicting inflation will reach 8% in Spring and could rise further later in the year.

“The Chancellor’s Spring Statement failed to provide economic security to the most vulnerable in society, including those in low paying and insecure employment. Universal Credit beneficiaries saw their benefits uprated by just 3.1% in April, lagging behind inflation. The Chancellor must return to despatch box and, at a minimum, raise Universal Credit in line with predicted inflation to provide security to those at the sharp end of the cost of living emergency.”

Original article link: https://www.lancaster.ac.uk/work-foundation/news/largest-fall-in-living-standards-on-record-as-inflation-outpaces-wage-growth

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