UK pay settlements hold at 4%, highest since 1992 - XpertHR

·1 min read
FILE PHOTO: A worker arrives at his office in the Canary Wharf business district in London

LONDON (Reuters) - British employers agreed average pay rises of 4% with staff in the three months to the end of July, the joint-biggest increase since 1992 but falling further behind inflation, industry data showed on Wednesday.

Human resources data company XpertHR said the median pay settlement remained unchanged for a fourth month in a row even as inflation hit a 40-year high of 9.4% in June and is set to exceed 13% in October, according to the Bank of England.

Separate figures on Tuesday showed the biggest real-terms fall in pay excluding bonuses since official records began in 2001.

"Pay awards continue to remain stagnant, unchanged from the previous three rolling quarters at 4%, in spite of soaring inflation," XpertHR pay and benefits editor Sheila Attwood said.

The BoE wants to stop high inflation - which has been largely driven by a jump in energy prices - from becoming entrenched for years to come.

Earlier this month, the central bank raised interest rates by the most since 1995, citing inflation pressures in the labour market as a factor for its decision, notwithstanding its forecast of a five-quarter recession starting in late 2020.

XpertHR said it monitored 68 pay deals in the May-July period, covering almost 550,000 employees.

(Writing by William Schomberg; editing by David Milliken)