Pay Squeeze Projected
With inflation surging due to increases in the price of gas, electricity, diesel, petrol, and food, experts are warning of a big pay squeeze, with wages failing to keep pace with inflation.
The latest statistics on the pay squeeze released by the Office for National Statistics (ONS) show that average pay in the 3 months to February 2022 increased by 5.4%, inclusive of bonuses, and by 4%, exclusive of bonuses. However, that has to some extent been offset by the surging rate of inflation. Inclusive of bonuses, real wages increased by just 0.4%, whilst exclusive of bonuses, there was a large fall of 1%.
This was the second month in a row in which there has been a fall in the real value of regular pay (i.e. pay exclusive of bonuses), as the statistics for the 3 month period to January 2022 also showed that there had been a 1% fall.
The pay squeeze is only likely to get worse over the next year, with Inflation continuing to surge ahead. As measured by the Consumer Prices Index (CPI), inflation increased again in the 12 months to March 2022 to 7%. That is up 0.8% from the 6.2% registered in February 2022, and up 1.6% from the 5.4% rate for December 2021.
The Office for Budget Responsibility (OBR) are forecasting that inflation will average 7.4% in 2022, with little respite in terms of the pay squeeze, before falling back to an average of 4% in 2023.
The 7% 12-month CPI inflation rate registered for March 2022 is the highest rate since March 1992, when it hit 7.1%.
Commenting on the latest pay squeeze statistics, the Senior Economist at the Resolution Foundation, Nye Cominetti, stated: "Soaring inflation is casting a big shadow over an otherwise buoyant labour market. Vacancies are at record highs, while redundancies and unemployment are close to record lows. But while this positive news on the jobs front is leading to higher wages, it is not enough to prevent an already painful pay squeeze that will get worse in the months ahead."
Cominetti added: "Everyone will be affected by the UK’s latest pay squeeze, which isn’t expected to end until late 2023. And with the current inflation being driven by soaring energy bills, it will be lower-incomes families feeling the squeeze the most."
Disabled Workers Constitute 15% Of The Workforce
New statistics from the ONS show that 15% of workers, around 5 million people, aged 16-64 have some form of disability
A 2012 Governmenrt study found that the 5 most common long term conditions that disabled employees have to contend with are hypertension, depression, asthma, diabetes, and coronary heart disease.
Unum UK argues that one of the key tools that employers can deploy in terms of keeping disabled employees in employment is to use wellness action plans, as they facilitate discussion in terms of how employees can be best supported in their roles.
Unum UK’s Director of Claims, Rehab and Medical Services, Paula Coffey, contends that: "Wellness Action Plans are not about making people with long-term conditions feel forced to work. If people face this pressure whilst unwell, this can be harmful and worsen their condition....Instead, a Wellness Action Plan is about ensuring people with long-term conditions who do feel able to work and want to work are empowered to do so. It ensures they have what they need from their employer to remain well and in their jobs."
Coffey adds: "Long-term sickness can have terrible costs to individuals beyond loss of income. Taking appropriate steps to avoid it where possible, especially among those who are most vulnerable, is crucial to support employees living and working with disabilities and long-term conditions when they need it the most."
