Personnel Today
  • Home
    • All PT content
  • Email sign-up
  • Topics
    • HR Practice
    • Employee relations
    • Learning & training
    • Pay & benefits
    • Wellbeing
    • Recruitment & retention
    • HR strategy
    • HR Tech
    • The HR profession
    • Global
    • All HR topics
  • Legal
    • Case law
    • Commentary
    • Flexible working
    • Legal timetable
    • Maternity & paternity
    • Shared parental leave
    • Redundancy
    • TUPE
    • Disciplinary and grievances
    • Employer’s guides
  • AWARDS
    • Personnel Today Awards
    • The RAD Awards
  • Jobs
    • Find a job
    • Jobs by email
    • Careers advice
    • Post a job
  • Brightmine
    • Learn more
    • Products
    • Free trial
    • Request a quote
  • Webinars
  • Advertise
  • OHW+

Personnel Today

Register
Log in
Personnel Today
  • Home
    • All PT content
  • Email sign-up
  • Topics
    • HR Practice
    • Employee relations
    • Learning & training
    • Pay & benefits
    • Wellbeing
    • Recruitment & retention
    • HR strategy
    • HR Tech
    • The HR profession
    • Global
    • All HR topics
  • Legal
    • Case law
    • Commentary
    • Flexible working
    • Legal timetable
    • Maternity & paternity
    • Shared parental leave
    • Redundancy
    • TUPE
    • Disciplinary and grievances
    • Employer’s guides
  • AWARDS
    • Personnel Today Awards
    • The RAD Awards
  • Jobs
    • Find a job
    • Jobs by email
    • Careers advice
    • Post a job
  • Brightmine
    • Learn more
    • Products
    • Free trial
    • Request a quote
  • Webinars
  • Advertise
  • OHW+

Latest NewsEconomics, government & businessPay & benefitsPay settlements

Bank of England chief backtracks on pay restraint comments

by Ashleigh Webber 24 Feb 2022
by Ashleigh Webber 24 Feb 2022 Andrew Bailey
Dan Kitwood/AP/Shutterstock
Andrew Bailey
Dan Kitwood/AP/Shutterstock

The governor of the Bank of England has appeared to backtrack on his comments that employees should not ask for pay rises in order to curb inflation.

Earlier this month Andrew Bailey said there needed to be a “moderation of pay rises” after inflation hit a 30-year high of 5.4% in January. The CPI rate of inflation is expected to peak at 7.25% in April 2022.

His comments came under fire from trade unions and even the prime minister, whose spokesperson said: “We obviously want a high-growth economy and we want people’s wages to increase.”

However, responding to questions from MPs on the Treasury committee this week, Bailey appeared to climbdown on his plea for restraint, stating: “I’m not saying people should not take pay rises. I did make the point it was in the context of large pay rises. And my concern is the second-round effects. If everybody tries to get ahead of the shock we’ve had from outside, then we’ll get the second-round effects and it will get worse. That’s the problem.”

He said that pay restraint should be employed by “everybody”, yet struggled to answer when asked how much he was personally paid compared with the median UK wage of £31,285.

Pay and inflation

Pay trends January 2022: First deals of the year explored 

XpertHR indicators: Inflation 

How to use inflation statistics in pay setting 

“[It’s] substantially higher. It’s somewhere over £500,000, I can’t tell you exactly what it was. I don’t carry that around in my head,” he said.

The latest analysis by XpertHR found pay awards have seen their biggest increase in more than a decade, with the median pay award reaching 3% in the three months to the end of January 2022.

Bailey said it was worrying that poorer households would most likely bear the brunt of the rising cost of living.

“It’s those with the least bargaining power in the labour market that lose out in this situation,” he said. “In a process where there are people trying to offset the shock to real income, some people will be better able to do it than others.”

He said he would visit a care home to see how low-paid workers were managing with rising inflation.

“I don’t think it’s appropriate for me as governor of the Bank of England to make an observation about the pay level of a particular group in society,” he said. “[But] I will take my governor’s hat off for a moment.

Sign up to our weekly round-up of HR news and guidance

Receive the Personnel Today Direct e-newsletter every Wednesday

OptOut
This field is for validation purposes and should be left unchanged.

“My mother was in a care home for several years, I have close experience. I have enormous respect for people who work in care homes. It is a very, very difficult environment for people to work in.”

Compensation and benefits opportunities on Personnel Today


Browse more compensation and benefits jobs

Ashleigh Webber

Ashleigh is a former editor of OHW+ and former HR and wellbeing editor at Personnel Today. Ashleigh's areas of interest include employee health and wellbeing, equality and inclusion and skills development. She has hosted many webinars for Personnel Today, on topics including employee retention, financial wellbeing and menopause support.

previous post
Reducing legal risks around retirement conversations
next post
Princess Anne calls for more women in Stem roles

You may also like

Pay awards in real terms could fall for...

21 May 2025

Ryanair demands flight attendants pay back salary increase

21 May 2025

NHS Scotland staff accept two-year 8.2% pay deal

16 May 2025

Nurses threaten strikes if pay demands not met

12 May 2025

Private sector median pay increases remain at 3.5%

6 May 2025

Public sector staff could be in line for...

28 Apr 2025

Confidence returning to jobs market, data shows

28 Apr 2025

What will reward look like in 2035?

28 Apr 2025

NI increase has not caused ‘knee-jerk reaction’ in...

23 Apr 2025

Scottish Water workers strike in dispute over pay

22 Apr 2025

  • 2025 Employee Communications Report PROMOTED | HR and leadership...Read more
  • The Majority of Employees Have Their Eyes on Their Next Move PROMOTED | A staggering 65%...Read more
  • Prioritising performance management: Strategies for success (webinar) WEBINAR | In today’s fast-paced...Read more
  • Self-Leadership: The Key to Successful Organisations PROMOTED | Eletive is helping businesses...Read more
  • Retaining Female Talent: Four Ways to Reduce Workplace Drop Out PROMOTED | International Women’s Day...Read more

Personnel Today Jobs
 

Search Jobs

PERSONNEL TODAY

About us
Contact us
Browse all HR topics
Email newsletters
Content feeds
Cookies policy
Privacy policy
Terms and conditions

JOBS

Personnel Today Jobs
Post a job
Why advertise with us?

EVENTS & PRODUCTS

The Personnel Today Awards
The RAD Awards
Employee Benefits
Forum for Expatriate Management
OHW+
Whatmedia

ADVERTISING & PR

Advertising opportunities
Features list 2025

  • Facebook
  • Twitter
  • Instagram
  • Linkedin


© 2011 - 2025 DVV Media International Ltd

Personnel Today
  • Home
    • All PT content
  • Email sign-up
  • Topics
    • HR Practice
    • Employee relations
    • Learning & training
    • Pay & benefits
    • Wellbeing
    • Recruitment & retention
    • HR strategy
    • HR Tech
    • The HR profession
    • Global
    • All HR topics
  • Legal
    • Case law
    • Commentary
    • Flexible working
    • Legal timetable
    • Maternity & paternity
    • Shared parental leave
    • Redundancy
    • TUPE
    • Disciplinary and grievances
    • Employer’s guides
  • AWARDS
    • Personnel Today Awards
    • The RAD Awards
  • Jobs
    • Find a job
    • Jobs by email
    • Careers advice
    • Post a job
  • Brightmine
    • Learn more
    • Products
    • Free trial
    • Request a quote
  • Webinars
  • Advertise
  • OHW+