Regular pay between April and June fell 3% on the year when taking into account inflation.
Darren Morgan, director of economic statistics at the ONS said the "real value" of pay was continuing to fall. "Excluding bonuses, it is still dropping faster than at any time since comparable records began in 2001," he said.Private sector wages grew by 5.9% while those working in the public sector saw pay growth of 1.8% - which Mr Morgan said is the "largest difference we have seen for 20 years".
The Bank of England recently lifted interest rates by the largest amount in 27 years to 1.75% in a bid to cool rising prices. It also warned that the UK economy will fall into recession towards the end of this year as prices for gas and electricity continue to rise. The key now will be what happens to inflation next year. If price inflation slows down as hoped, then pay rises may once more outstrip price rises. That's better for workers' living standards.
"Being in stable employment is one of the best ways for people to get on, but we're also providing £1,200 direct payments for millions of low income households as part of our £37bn package of support to help with the cost of living," she said. Though the ONS points out that since vacancies fell to an all-time low between April to June 2020 in the beginning months of the Covid pandemic, they have increased by 945,000.
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