City of London workers lead wage growth as pay inequality worsens in UK

Only the UK’s highest earners have been given inflation-busting pay rises so far this year, as the country’s lowest earners see pay growth ‘flatline’, according to the latest research.

The highest earners, typically concentrated in the City of London among finance, professional and technical sectors, have seen annual pay growth of 10 per cent, while lowest earners have seen just a one per cent rise, analysis from the Centre for Economics and Business Research (Cebr), a consultancy, bankers, financial professionals, has revealed today.

Cebr has urged that more support be focused on the UK’s lowest-income households, for those in and out of work, “if they are to avoid worsening hardship”, it said.  

The biggest salaries has performed particularly well this year, with finance and insurance pay packet growth peaking at 19.8 per cent, leaving current inflation levels of 9.4 per cent in the dust.

Cebr found that recent wage spikes have grown out of sector which have been minimally hit by shortages in materials, staff and cash flow, where workers typically receive performance-linked bonuses.

However, the average 10 per cent wage hike for the highest earners means real pay growth is just 0.6 per cent, as another jump in energy costs is expected this winter.