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 & businessInflationPay & benefitsPay settlements

Rising inflation has not affected pay rates

by Personnel Today 28 May 2010
by Personnel Today 28 May 2010

Rising inflation has yet to affect pay rates, with the median award remaining at 1% for the three months to 30 April, according to IRS research published exclusively on XpertHR.


While the headline rate of inflation, as denoted by the retail prices index – the yardstick used by the overwhelming majority of pay decision makers – hit a 19-year high in April at 5.3%, the median pay award has now remained at 1% for four consecutive rolling quarters, IRS said.


The figures, based on provisional analysis of 113 settlements, cover the three months between 1 February and 30 April. While January deals have now dropped out of the latest calculations, they have been replaced by a new crop of April reviews, giving a first glimpse of bargaining outcomes in what is a crucial month in the annual wage round.


While employments experts have predicted high inflation will increase the pressure on employers to raise wages, the analysis of these April deals suggests the opposite may be the case right now.


The median award for the 93 deals with anniversary dates falling in April alone is 0.75%, below the 1% recorded for the key month of January.


This suggests that continued economic weakness, together with high levels of unemployment and public sector pay restraint, may be countering the upward drift in RPI inflation, according to Adam Geldman, deputy editor for pay and benefits at XpertHR.


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.

“On the evidence of recent months the link between pay and inflation, while not broken, may have been substantially weakened, notably by the effects of the recession,” he said.


The IRS research also shows that public sector deals are on the wane, falling from 2% in the year to March to 1% in the 12 months to April. They are now at running at exactly the same level as those in the private sector.

Personnel Today

previous post
Drug test guidelines must be produced by government, says TUC
next post
QinetiQ to reduce costs by 10% by cutting jobs and benefits

You may also like

Level 7 apprenticeship funding cuts to cost employers...

23 Jun 2025

Skills receive £1.2bn boost in new industrial strategy

23 Jun 2025

Low-paid could receive ‘Britannia’ dividend under Reform’s non-dom...

23 Jun 2025

Man who used company credit card for himself...

23 Jun 2025

Personnel Today Awards 2025: Final deadline today

23 Jun 2025

UK engineering and manufacturing firms face hiring struggles

23 Jun 2025

Empowering working parents and productivity during the summer...

23 Jun 2025

How smarter collaboration can eliminate the workplace productivity...

23 Jun 2025

Aldi to hire for 1,000 new supermarket roles

23 Jun 2025

Seven ways to prepare now for the Employment...

20 Jun 2025

  • Empowering working parents and productivity during the summer holidays SPONSORED | Businesses play a...Read more
  • AI is here. Your workforce should be ready. SPONSORED | From content creation...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+