The average worker is just 8p a month better off than a year ago because of a chronic spending squeeze, figures have revealed.
Research found the typical employee in Britain’s biggest 350 firms got just under £1,534 in their pay packet last month –1.4% more than in September 2013. But this doesn’t take account of inflation or how much more households are shelling out.
Once inflation, including housing costs, is factored in, most workers are barely any better off with their “real” take-home pay up just 8p.
Workers in some sectors are doing better than others, the report from pay experts VocaLink and the Centre for Economics and Business Research found.
The average manufacturing worker has seen their real take-home pay rise by 0.9% – or £15.58 – to around £1,763 a month. But service sector pay dropped year-on-year in September, down 0.1% – or £1.43 a month – to £1,509.
And public sector workers have been hit even harder, with typical “real” pay falling by 0.7% to £1,586. The hefty drop means the average public sector worker is £11.12 a month worse off.