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+

Financial wellbeingLatest NewsEconomics, government & businessInflationPay settlements

Inflation reaches 9.4%, but pay awards well behind

by Ashleigh Webber 20 Jul 2022
by Ashleigh Webber 20 Jul 2022 The value of pay awards and inflation seemed miles apart in June 2022
Shutterstock
The value of pay awards and inflation seemed miles apart in June 2022
Shutterstock

Inflation continued to rise in June 2022, reaching 9.4% at the consumer prices index (CPI) measure and putting further pressure on employees’ salaries.

On a monthly basis, CPI rose 0.8%, according to the Office for National Statistics.

The retail prices index (RPI), which is no longer an official statistic but is used by many trade unions for pay bargaining, was 11.8%, up only slightly from 11.7% in May.

The increase in CPI inflation was mainly driven by rising fuel and food prices.

The CPIH, which includes owner occupiers’ housing costs, was 8.2% in June, up from 7.9% in May.

Pay awards and inflation

How should HR handle the highest inflation in decades?

Real wages fall 2.8% as pay fails to keep up with inflation

Pay settlements continued to lag well behind both CPI and RPI, with XpertHR finding that the median basic pay increase in the three months to the end of June 2022 was 4% for the third consecutive rolling quarter.

Sheila Attwood, pay and benefits editor at XpertHR, said: “Pay awards appear to have plateaued after a third consecutive rolling quarter held at a 4% median. Inflation, on the other hand, has showed no sign of slowing down, with the consumer prices index expected to remain high through the second half of 2022.

“For the many people suffering financially, this year’s pay rises will not be enough. Employers should aim for pay rises that get as close to inflation as they can, to support their staff. They should also explore alternative ways that they can help – whether that be through benefit packages that supply discounts for the weekly shop, or financial guidance that advises staff on how to best manage their money, it all helps employees to weather the cost-of-living crisis.”

Earlier this week, the ONS revealed that real wages had fallen 2.8% behind inflation in March-May 2022.

According to Willis Towers Watson’s latest inflation and rewards actions survey, many organisations were increasing salary budgets, paying higher salaries on a targeted basis, paying employees more frequently, or placing more emphasis on non-financial elements of compensation.

Two-thirds of organisations that planned to make more frequent salary adjustments expected to do so for targeted groups, with a focus on employees who are retention risks (71%), colleagues with rare/hot (68%) or digital skills (54%) and the lowest paid or highest performing workers (54%).

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.

Willis Towers Watson’s work and rewards expert Alasdair Wood said: “Critically, companies will need to evaluate their business priorities to identify where longer-term funding will come from because it’s likely that issues surrounding recruitment and inflation will extend well into 2023 and possibly beyond.”

Reward, compensation and benefits opportunities


Browse all comp 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
Royal Mail workers vote for strike action over pay
next post
Workplace health a major facet of ‘gender health gap’ strategy

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+