Cost of Living pay rises

N

Nano

Well-known member
Don't ask your employer to match your pay to inflation says the governor of the Bank of England, Mark Bailey. We wouldn't want pay inflation to match price inflation? That would be terrible wouldn't it. I'm sure public sector workers will be expecting their usual pay freeze anyway, but no way is private pay rising at 5% for everyone. More likely a few industries have had rises due to shortages but the majority of people are just going to be faced with being poorer.

www.bbc.co.uk

Don't ask for a big pay rise, warns Bank of England boss

Andrew Bailey says a "painful" period of prices rising faster than wages is needed to control inflation.
www.bbc.co.uk

*In the year from 1 March 2020, Mr Bailey was paid £575,538 including pension.
 
I've always thought pay rises to match inflation should be automatic, across all industries and sectors, every year unless the employer wants to argue the toss in a tribunal. Same as how minimum wage goes up incrementally every year.

So if inflation is 2% your wages automatically go up 2%, and any real pay rise is on top of that.

After all, it's a pay cut. Most people wouldn't stand for that. I've argued this out with a few employers.

There's a policy Labour could run on.
 
I just read that and thought it an odd position to take.

I was lucky in that I got 3% this year, but its only half of what they forecast the average for inflation for 2022 to be. We are living in strange times.
 
No pay rise for us for the 3rd year in succession, obviously the shareholders need the money more than I do
 
Whats interesting with all the rise in gas and electricity prices is will there there any further work from home subsidies. if not then i think if you work from home then your employer should at the least compensate you for your increased operating costs
 
Inflation isnt being caused by overspending in the UK though it’s global supply issues across all industries. Messing around with UK interest rates will not change it and wages going up or down will not change it either.
 
Glover_elbow said:
Whats interesting with all the rise in gas and electricity prices is will there there any further work from home subsidies. if not then i think if you work from home then your employer should at the least compensate you for your increased operating costs
Click to expand...
Very good point
 
Wage increase negotiations have just started at ours, last year we got 2.4% so will be intresting to see what happens this year.
 
Glover_elbow said:
Whats interesting with all the rise in gas and electricity prices is will there there any further work from home subsidies. if not then i think if you work from home then your employer should at the least compensate you for your increased operating costs
Click to expand...
I do not believe that there are any further work from home subsides as the slight relief via the tax code change has been stopped.

We are all in it together and making Britain great again, or some other nonsense!
 
Priv said:
Inflation isnt being caused by overspending in the UK though it’s global supply issues across all industries. Messing around with UK interest rates will not change it and wages going up or down will not change it either.
Click to expand...
Yeah, I was thinking this yesterday. Normally interest rate rises are to curb demand a bit when everyone is feeling flush and overspending, causing demand to soar and prices to rise. We'd all happily spend less at the moment, but food's gone up, petrol's gone up, gas/electric has gone up. That's why inflation is sky high.

It's interesting that we all get to share the pain with big companies when there's a squeeze and prices are going through the roof. Funny how we don't really get to share the spoils in the same way when supply is super cheap and business is booming. Then they just make record profits! 🙄
 
Cuthbert said:
Yeah, I was thinking this yesterday. Normally interest rate rises are to curb demand a bit when everyone is feeling flush and overspending, causing demand to soar and prices to rise. We'd all happily spend less at the moment, but food's gone up, petrol's gone up, gas/electric has gone up. That's why inflation is sky high.

It's interesting that we all get to share the pain with big companies when there's a squeeze and prices are going through the roof. Funny how we don't really get to share the spoils in the same way when supply is super cheap and business is booming. Then they just make record profits! 🙄
Click to expand...
Absolutely !
 
On a separate note for those of you in the private sector, what % rise are you going to be asking for in your pay reviews? Mines due March and I’m thinking of asking for 7-8% I’d be disappointed if I got offered anything less than 5.
 
We normally get a cost of living eg inflation plus something for personal performance . It normally averages anout 3% especially due to inflation being very low in recent years . I’m assuming the company will come up with some reason why inflation at the moment is spikey, too early to judge etc etc and we’ll get the same average of about 3%.
 
It is correct though as painful as it is for everyone, but big pay rises with big inflation mean everything goes up and stays up. Do you think landscapers and builders etc are going to knock 30% off their prices now pandemic is receding after spending so long getting extra money? It becomes the new price unless demand disappears, which is unlikely
 
When I was a permanent member of staff in the private
Priv said:
On a separate note for those of you in the private sector, what % rise are you going to be asking for in your pay reviews? Mines due March and I’m thinking of asking for 7-8% I’d be disappointed if I got offered anything less than 5.
Click to expand...
when I was a permanent member of staff we didn’t get to ask for a specific per cent age. We were just given a pay rise - somewhere between two and four percent(unless you were out of kilter with others doing a similar role then you may get five possibly six per cent. This was all explained as being correct and based on performance so couldn’t possibly be wrong and complaints were not encouraged.

I am now an IT contractor where the market seems to be thriving compared to this same time last year. There are probably many factors contributing to that as firms begin to start regulatory projects they have put off for a couple of years. Also as roles are mostly inside IR35 rates now reflect this.
 
Glover_elbow said:
Whats interesting with all the rise in gas and electricity prices is will there there any further work from home subsidies. if not then i think if you work from home then your employer should at the least compensate you for your increased operating costs
Click to expand...
I suspect the line would be, come into the office then.
 
You must log in or register to reply here.
Back
Top