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Home›Finance›Most British companies not to raise pay to match rising inflation

Most British companies not to raise pay to match rising inflation

By Mile
March 23, 2017
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Most British companies do not expect to offer more generous pay deals to employees this year compared with 2016, adding to signs that higher inflation will gnaw at Britons’ living standards in the months ahead, a survey showed on Thursday.

Private sector employers on average expect to give pay awards of 2 per cent for the coming year, similar to last year, human resources consultants XpertHR said. Only 30 per cent of companies forecast they will give a bigger pay rise than in 2016.

The outlook for wage growth is critical for Britain’s economy as it begins the process of leaving the EU. Consumers kept up their spending after June’s Brexit referendum shock but there have been signs that they are turning more wary.

XpertHR’s figures follow official data on Tuesday that showed a stronger rise in inflation than expected.

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