The ONS suggests that while pay rose 4% in the last quarter it was far outstripped by inflation, which is expected to reach almost 9% this year. The Bank of England is advising employees to keep their pay rise requests to a minimum so as not to feed rising inflation. At the same time the government says it isn’t their role to influence conversations between private businesses and their employees about wages. The UK’s biggest union, Unison, is backing above-inflation pay rises in the public sector.
So, should we be paying our people more to make up for cost of living increases? Or should we be taking a ‘responsible’ approach?