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Daily Mirror
Daily Mirror
Politics
Dave Burke

Pay rises for fat cat bosses blamed for inflation amid 'scapegoating' of workers fury

Pay rises for fat cat bosses are to blame for inflation piling misery on millions, with lower paid workers being "scapegoated", new analysis shows.

The salaries of the top 10% has outstripped the rest of the workforce - but the Bank of England has sparked anger by appearing to blame wage demands from low and mid earners.

The TUC has found the highest paid - with salaries of £180,000 or more - raked in an extra 7.9% compared to last year, while wage growth is falling for everyone else.

It comes amid fears the Government may overrule public service pay review bodies (PRBs) if they recommend increases ministers view as "unsustainable".

TUC head of economics, Nicola Smith, said there is "no evidence" of accelerating wages rises for 90% of workers.

Bank of England Governor Andrew Bailey appeared to blame wage increases for inflation (POOL/AFP via Getty Images)

She told The Guardian: “Scapegoating people in work for high inflation is wrong.

"There is no evidence of high or accelerating wage increases across 90% of the workforce.

"If anything, the data shows wage rises are slowing and most workers are suffering real-terms wage cuts."

It comes after interest rates rose by 0.5 percentage points, the 13th consecutive rise as economists desperately try to get inflation under control.

The TUC found those earning £26,300 a year recorded a 4.7% increase in wages in April - down from 9.5% in January.

Bank of England Governor Andrew Bailey said last week: “The UK cannot continue to have the current level of wage increases.”

Rishi Sunak has stressed his decision on public sector pay will be "responsible" and may not be popular in the short term.

He told the BBC's Sunday With Laura Kuenssberg: "I have to make difficult decisions as Prime Minister. Everyone can see the context that we're in with inflation and interest rates.

"Now, I want to prioritise the things that are right for the country. So yes, we're investing in the (NHS) long-term workforce plan.
"When it comes to public sector pay I'm going to do what I think is affordable, what I think is responsible.

"Now that may not always be popular in the short term, but it's the right thing for the country."

And John Glen, Chief Secretary to the Treasury, told Sky News's Sophy Ridge On Sunday show: "We haven't had all the pay review body reports in yet.

The Government may overrule pay boards if they recommend rises they think are too high (PA)

"As a matter of principle pay review bodies are a very significant part of resolving the pay issues. But obviously we've also got to take account of the effect on inflation.

"That would be irresponsible not to do that."

It has sparked anger among unions. Jon Richards, assistant general secretary of Unison, said: “In the last pay round, the government spent months hiding behind the NHS pay review body.

"Ridiculous claims ministers couldn’t intervene with the PRB led to strikes and much needless disruption to patients and services.

“For the Prime Minister to be pondering blocking the other pay review bodies is utterly farcical.”

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