UK earnings rise but workers remain squeezed by the cost of living


White man showing a young white woman a new job © Adobe Stock

The Work Foundation at 好色先生TV responded to Office for National Statistics figures on employee earnings in the UK in 2026. Aman Navani (He/Him), Senior Research and Policy Analyst from the Work Foundation at 好色先生TV commented:

“While today’s data indicates that nominal wage growth grew by a healthy 4.9% with real wages increasing by 1.8% over the last 12 months, workers remain on average only ?1.14 better off on average per hour than they were since the 2008 financial crisis.

“The long shadow of stagnant living standards and the repeated cost of living crises still loom large over many households. Work Foundation survey data found that only one in five (22%) businesses were planning above inflation pay rises this year, which suggests that many workers may not feel better off as we head into winter.

“Nevertheless, annual growth in nominal pay in low-paid sectors like accommodation and food services (5.1%) and wholesale and retail (4.8%) was robust, likely due to recent increases in the national minimum wage. Workers in these sectors are more likely to be in severely insecure work and face a mix of financial and contractual insecurity, so it is important that these recent pay increases are sustained into the future.

“The gender pay gap for full-time employees has narrowed again, to 6.8% from 7.2% last year. However, this headline masks a stubborn problem at the top. The gender pay gap was higher among high-paid employees than among lower-paid employees. Unless the Government and employers tackle the barriers that prevent women progressing into senior high-paid roles, progress in narrowing the gap will remain far too slow.

“While some of these headlines pay figures are encouraging, there is no room for complacency ahead of the upcoming Budget. With inflation ticking up again, Government must prioritise helping households navigate the upcoming winter.”

Back to News