Britons enjoyed a rise in earnings of almost 2% in the past year after near-zero inflation boosted take-home pay by the biggest margin since the financial crash.

Confirming that the UK’s long pay squeeze has come to an end, workers secured a 1.8% rise in average annual earnings in the year to April. This figure went up to a real increase of 1.9% after being adjusted for inflation, the Office for National Statistics (ONS) said, as it published an annual survey of hours and earnings (Ashe).

The positive earnings figures pushed median gross annual income for full-time employees to £27,600, an increase of 1.6% on the previous year.

The data will be welcomed by ministers, who have seen average inflation-adjusted earnings fall in the previous six years.

But analysts said the rise in pay was nowhere near the 3.5%-4% level expected by the Bank of England before it considers raising interest rates.

Much of the additional wages were also going to workers in London and the south-east of England, leaving behind regions in the north, west and especially the north-east.

Doug Monro, a spokesman for the recruitment firm Adzuna, said: “The north-east is particularly bearing the brunt of lower wages. Without investment and infrastructure, the area continues to be haunted by low salaries. Areas such as Sunderland still have strong competition for jobs, which is pushing many jobseekers into lower-paid positions.”

Those working in north-east Derbyshire had the lowest weekly wages of £389, compared to £921 in the City of London. Wales was the only major region to see pay fall, with earnings 0.1% lower than last year.

See more at:

The Guardian