Calm Before the Storm

Last month we reported that deals in the last couple of months show a worsening picture, and this is concerning as inflation statistics are expected to increase next month when the data for April comes out. Household bills went up in April with the Ofgem price cap up 6.4%, and water bills increased by £10 a month on average.

On top of this, the labour market as a whole is looking worse for workers, as the number of vacancies reached its lowest level in almost four years. The impact of US tariffs on the UK economy is as yet unclear.

The good news is that new minimum wage rates came in on 1st April, and accredited employers had until 1st May to implement the new Real Living Wage rates of £13.85 in London and £12.60 elsewhere.

Our main feature picks up on this regional aspect of pay and presents data from Payline showing the variation in allowances across the country. It is surprising how little consistency there is within and between regions, even though there exist well-established measures for cost-of-living variations. However, as the feature points out, negotiators can still benchmark allowances with reference to living costs and the sector involved.