Photo: PA
The cost of living rose to the highest level since 1992, casting doubt over the value of NHS staff pay rises.
In the year to December, the cost of living rose at the fastest pace in almost 30 years, according to official figures.
The UK’s Consumer Prices Index measure of inflation increased to 5.4 per cent in November, almost double the pay rise received by NHS staff such as nurses, paramedics and GPs in July last year.
Inflation was last higher in March 1992, when it reached 7.1 per cent. An independent research consultancy Capital Economics predicted inflation is now expected to hit seven per cent in April.
Rising costs have been recorded for food, non-alcoholic drinks, household aspects such as energy bills, furniture and clothes.
“These large rises were slightly offset by petrol prices, which despite being at record levels were stable this month, but rose this time last year,” ONS chief economist Grant Fitzner said.
And Paul Johnson, Institute for Fiscal Studies director, said people on low wages would be particularly affected by the living costs hikes.
“Everyone, particularly those on modest incomes, has had a long period of wages not really growing any faster than prices over the last decade, so another increase at this point is going to be particularly painful,” he told the BBC.
According to ONS figures, average pay rises are failing to keep up with the rate living costs are rising at. Regular salaries fell one per cent in November last year compared to November 2020.
Shadow treasury secretary Pat McFadden warned the cost of living crisis is only going to worsen in coming months, based on the figures released.
“Working families are already feeling the crunch. But the triple whammy of an imminent rise in the energy price cap, real wages falling and Tory tax rises coming down the tracks are going to make this crisis even worse,” McFadden said.
Meanwhile, chancellor Rishi Sunak said: “I understand the pressures people are facing with the cost of living, and we will continue to listen to people’s concerns as we have done throughout the pandemic.”
It comes as earlier this month it was revealed MPs are in line for a potential £2,000 pay rise from the public purse.
MPs are currently paid £81,932 and usually see their pay rise annually in line with average public sector salary increases.
This year, if the rise goes ahead, MPs would enjoy a 2.7 per cent increase of more than £2,000.
It would come into effect on April 1st – the same time the Government’s controversial rise in National Insurance payments comes in.
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