Four in ten workers had no pay rise in the last year, MSE poll finds

Only a quarter had a pay rise matching or exceeding current inflation, while those on lowest salaries least likely to have seen a rise

- Only a quarter had a pay rise matching or exceeding current inflation
- Those on lowest salaries least likely to have seen a rise
- Poll of nearly 9,000 money-savers

Four in ten (41%) workers haven’t had a pay rise in the last year, with those on the lowest salaries least likely to have had one, according to a poll by the UK’s biggest consumer website, MoneySavingExpert.com.

Discounting those who said they didn't know, some 8,851 people were asked whether they'd had a pay rise, or had awarded themselves one if self-employed. The site also asked whether any increase they'd seen was less than, in line with or more than current inflation. The Consumer Prices Index (CPI), a key measure of how fast UK prices are rising, is currently at a five-and-a-half year high of 3%.

Here are the poll's key findings, calculated from those who said whether they had or hadn't had a pay rise.

  • Overall 59% said they’d had a pay rise in the past year. But only 24% said their wage had risen in line with or by more than current inflation.
  • For those that had had no pay rise, it wasn't simply a case of being new in their role. 89% of those who hadn't had a pay rise said they HAD been in their job for longer than a year.
  • Those on the lowest salaries were generally much less likely to have had a pay rise. Just 39% of those earning less than £11,500 had had a pay rise in the past year, compared to 59% of those earning more than £65,001(1). Only 13% of those earning under £11,500 saw a rise in line with or by more than current inflation.

Megan French, consumer expert at MoneySavingExpert.com said: "This suggests many people have had an effective pay cut in the last year, with those who can least afford it affected the most. When inflation is high and people aren’t getting pay rises to match, households really feel the squeeze on paying the bills they can't avoid, such as heating, food and rent.

"But pay rises aside, it's always worth remembering there are plenty of ways to cut costs and give yourself a money makeover, such as switching your energy or doing an audit of your direct debits to make sure you're not paying out for things you don't use, which can all add up to save £1000s."

Poll results in full (excluding don't knows)

 

No – and I’ve been in my job for a year or more

No – but I’ve been in my job for less than a year

Yes – but by less than current inflation

Yes – in line with current inflation

Yes – by more than current inflation

I earn less than £11,500

56%

6%

26%

7%

6%

I earn £11,501 – £25,000

47%

4%

35%

5%

9%

I earn £25,001 - £45,000

29%

4%

40%

9%

17%

I earn £45,001 - £65,000

25%

4%

35%

12%

24%

I earn £65,001 - £100,000

28%

5%

27%

14%

27%

I earn £100,001 - £150,000

36%

6%

19%

10%

30%

I earn over £150,000

65%

8%

4%

7%

16%

Poll conducted in October 2017. 8,926 users responded in total, and discounting those who said they didn't know, 8,851 respondents answered whether they'd had a pay rise, or had awarded themselves one if self-employed.

-ends-

Notes to editors
(1) Those earning over £150,000 were least likely to have had a pay rise, but this was a small sample of 128.

View the full poll results here.

For more comments, please contact:
Katie Watts
Tel: 020 3846 2631
Mob: 07875 415 378
katie.watts@moneysavingexpert.com

About MoneySavingExpert.com: MoneySavingExpert.com is dedicated to cutting consumers’ bills and fighting their corner. The free-to-use consumer finance help resource aims to show people how to save money on anything and everything, and campaigns for financial justice. It was set up in 2003 for just £100, and its free-to-use, ethical stance quickly made it the UK’s biggest independent money website, according to internet ranking site Alexa.com, and the number one ‘Business and Finance – Business Information’ site, according to Hitwise. It has more than 12 million people opted-in to receive the weekly MSE’s Money Tips email, and more than 16 million unique monthly site users who visit more than 28 million times a month. In September 2012, it joined the MoneySupermarket.com Group PLC.