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Take home pay remains well below inflation
9 Sep 2010Take home pay increased by 1.3% in the last three months, well short of the rate of inflation, a study showed today.
The figure increased from 0.8% in the quarter to July, but remained below the consumer price index of 3.1%, said payments firm VocaLink.
Marion King, chief executive officer at VocaLink, said: "Whilst the gap between take home pay and inflation has narrowed, the difference remains high by historical standards.
"This is tough on households as take home pay growth lags nearly two percentage points behind the rise in the cost of essential goods and services."
Douglas McWilliams, chief executive of economics consultancy cebr, said the increase in take home pay followed recent strong economic growth in the UK and a fall in unemployment, sparking competition for employees which led to upward pressure on wages.
