IDR supports local girls’ football team

Incomes Data Research (IDR) has become an official sponsor of Billericay Girls under 14 football team.

Commenting on the announcement, IDR Director Louisa Withers said:

“IDR is committed to making a tangible difference to society in the way we run our business and recognises that we have a responsibility to our clients, employees and contractors and the wider community in which we operate. When asked about sponsoring this exciting young team we felt it provided a perfect way of putting our principals into practice.”

“We feel it is important to encourage young people to take part in sport. Aside from the health benefits, sports help young people develop skills for later in life, such as confidence and the ability to work as part of a team.”

Our support secures funding for the team’s biggest priority – new kits for the 2018/2019 season. We wish all the players an enjoyable and hopefully successful season ahead.

 

IDR gains Cyber Security certification

Incomes Data Research has successfully passed Cyber Essentials, demonstrating our commitment to cyber security.

Cyber Essentials  is a is a UK government scheme encouraging organisations to adopt good practice in information security. It helps firms guard against the most common cyber threats and ensures firms have robust IT and data security processes and systems in place.

 

 

Average Weekly Earnings – Falls in bonus pay nudge earnings growth down to 2.4%

Falls in bonus pay nudge earnings growth down to 2.4%

The rate of growth of average weekly earnings in the whole economy dropped back again in the latest figures from the ONS, to 2.4% in the year to June 2018, down from 2.5% in the year to May and 2.6% in the year to April. Bonus pay fell across all industrial sectors, especially in finance and business services, and was a major contribution to the drop in total pay growth.

Underlying earnings growth, as measured by the ‘regular pay’ series, which excludes bonuses, was a little higher at 2.7%. While this was also down on the previous month’s headline figure – which is based on a rolling three-month average – the single-month figures for regular pay for June showed a slight rise, from 2.7% to 2.8%, in contrast to the single-month figures for total pay, which fell sharply from 2.5% to 2.1%.

Average weekly earnings by sector at June 2018

 Average weekly earnings - regular pay (£pw)
Average weekly bonuses (£pw)
Finance and business services
582
75
Construction59423
Manufacturing57424
Wholesale, retail, hotels and restaurants33321
Private sector48038
Public sector5181

In last month’s figures, the fall in bonuses was confined to the finance and business services sector. However, this month bonuses fell back across all sectors, reflecting weakness in the economy in the year to June.

In the finance and business services sector, total average earnings grew by 1.5% in the year to June, marginally up on the figure of 1.4% in the year to May. In this sector the rise in earnings growth excluding bonuses was 2.4%.

In manufacturing, average earnings grew by 2.5% in the year to June, down from 2.9% in the year to May. However, a year ago, in June 2017, the rate of growth in manufacturing was much lower, at 1.3%.

In construction, where pay growth has been higher than other sectors recently, the rate of growth in average earnings was 5.3%, down a little from a revised figure of 5.7% in the year to May. However, in June 2017, the rate of growth in earnings in construction was almost zero, at 0.1%.

In the lowest-paying sector of wholesale, retail, hotels and restaurants, which has seen significant job losses over recent months, earnings growth was 3.2% in the year to June, the same as the revised figure for May. In June 2017, the rate of growth was a percentage point lower at 2.2%.


Looking at the private sector overall, average earnings growth was 2.4% in the year to June on the total pay measure and 2.8% on the regular pay measure. Meanwhile in the public sector, pay growth was 2.2% in the year to June, the same as the revised figure for May (both on the total pay measure, since bonuses are not a significant component of public sector pay).

Despite the public sector employing a much greater proportion of graduates and professional staff than the private sector, average weekly earnings are currently lower in the former than in the latter. Actual average earnings in the public sector dropped back from £518 in May to £517 in June, slightly behind the private sector figure of £518. First-stage increases from the recent three-year pay deal in the NHS were only paid in July and as such have yet to appear in the ONS data.

 

Alastair Hatchett
Visiting Fellow, University of Greenwich

 

Maternity and paternity pay: most employers improve on statutory maternity terms but sectors vary in their generosity

A majority of UK firms (70%) improve on statutory maternity pay of £145.18pw, according to IDR’s survey of maternity and paternity provisions. The most generous occupational maternity pay policies are on offer within the manufacturing and primary sector. Among the 53% of employers in this sector that offer enhanced maternity pay, mothers are typically eligible for around 19 weeks’ full pay. The lowest-value enhanced maternity pay policies are found within private services, where they are worth around 12 weeks’ full pay.

Continue reading Maternity and paternity pay: most employers improve on statutory maternity terms but sectors vary in their generosity

Pay reviews: median remains at 2.5%

For the sixth consecutive month, the median pay award across the whole economy stands at 2.5%, with the private sector median also holding steady at 2.5% in the three months to the end of June 2018. The median continues to be influenced by a number of higher awards at or above 4% which together account for a tenth of all rises in the sample.
Continue reading Pay reviews: median remains at 2.5%

Explaining the variation in gender pay gap figures

Around 10,000 firms have published their gender pay gap figures in line with the government’s deadline and there have been numerous headlines about those with the highest gaps. But what does the data really tell us? Here, we look at how and why the figures vary, with an emphasis on sectoral variations, as well as the impact that collective bargaining appears to have on the size of gender pay gaps.

Employers’ publication of their gender pay gaps has sparked a national conversation about the relationship between gender and pay. To date 10,249 firms have published their figures. IDR analysis of these shows an average gap of 14.4% between the average pay for men and that for women. There are, however, significant differences by sector.

Continue reading Explaining the variation in gender pay gap figures

Pay review: May remains at 2.5%

The median pay award across the whole economy remains at 2.5%, according to our latest analysis. This is the fifth consecutive month in which the median increase has been at this level. Higher awards, i.e. those at or above 3%, continue to account for almost a third of pay outcomes. The latest median, for the three months to May 2018, is influenced by several pay awards of over 4%, for instance at Argos and Centre Parcs, as well as by lower awards in some areas of the economy. Comparatively few increases are below 2% though we have recorded five pay freezes this time.

Continue reading Pay review: May remains at 2.5%

Saga maintains DB pension scheme

Saga has made changes to its defined-benefit pension scheme to contain costs and tackle the scheme’s deficit while keeping it open to both existing and new members for the long term. The company has also improved the terms of its group personal pension. These changes have been informed by the company’s strategy of helping customers and employees lead better lives in retirement. At the same time, the company has facilitated access to other financial products to support staff in managing savings priorities and is helping staff to make more informed decisions when it comes to saving for the future.

THE NEED FOR CHANGE
Saga is a provider of holidays, financial products and care services aimed at the over-50s. The company, which has more than 4,000 staff in the UK, has long offered a defined-benefit (DB) scheme, the Saga Pension Scheme (SPS), to all its permanent employees and just under half (48%) of the workforce are members. It applies its strategy, of helping people to ‘lead better lives in retirement’, to its employees as well as its customers and regards its pension provision as integral to this. The company also considers a DB pension scheme to be an attractive proposition in recruiting and retaining staff when many other companies are closing theirs.

However, in the two years from January 2014 to January 2016 the actuarial valuation of the DB scheme deficit – the gap between the value of investments and what it has to pay out in current and future benefits – had increased from £15.6 million to a forecast £50 million, while the total cost of future benefits had risen from 18.6% to over 30% of pensionable salaries. Saga therefore had to consider whether it could afford to keep the defined benefit scheme open.

Continue reading Saga maintains DB pension scheme

Pay settlements: broader picture of pay awards emerges

The median pay increase across the economy remains at 2.5% in the three months to the end of April 2018, according to the latest monitored figures from IDR. The proportion of higher awards at or above 3% has increased with these awards accounting for almost a third of all the awards monitored in this period. This compares to just under a quarter of awards recorded at this level in our look at the figures in the three months to the end of January.

Continue reading Pay settlements: broader picture of pay awards emerges

Pay settlements: March remains at 2.5%

For the third consecutive month the median pay award across the whole economy remains at 2.5%, according to our latest analysis. This trend, monitored for the three months to the end of March 2018, is also evident in the private sector with the median remaining at 2.5%. A consistent median of 2.0% has also been seen within the not-for-profit sector.
Continue reading Pay settlements: March remains at 2.5%