Pay rises for high earners are racing ahead of those of low-income workers, worsening the inequality gap as inflation rages and a recession looms.
According to an analysis from the Centre for Economics and Business Research, a consultancy, bankers, financial professionals and other top earners have won salary increases of about 10 per cent in the past three months, compared with 1 per cent for those in low-paying jobs.
Their pay “has flatlined in 2022”, Nina Skero, chief executive of the CEBR, said. “This has coincided with record rises in the costs of essentials. The rate of inflation for poorest households will be even higher than the headline rate, as a greater share of their expenditure goes towards gas and electricity.”