Weak productivity and increased costs such as; the national living wage, apprenticeship levy and pension auto-enrolment have curbed employers’ willingness to raise salaries.
Even though employment is expected to rise, pay growth is forecast to be just 1.7% over the next year. This compares to a figure of 3% – 5% in the year before the financial crisis took hold. The problems have been particularly hard felt in the retail industry as economic uncertainty and a darker global outlook have caused consumers to cut spending.
Weak pay growth has added to the pressures already faced by households. The CIPD surveyed 1,000 employers who predicted that workers were unlikely to see much of an above-inflation boost to the value of their pay until at least the end of the decade.
Has the general lack of pay increases had an effect on the finances of you or your household? If so then it is important to seek professional advice at an early stage in order to consider the range of options available to you. One of our experienced practitioners would be more than happy to arrange a meeting, initially free of charge. To take advantage of our service, please contact us.