All posts by Louisa Withers

Settlements rise to 2.4%, highest level so far in 2017

According to the latest monitoring figures from IDR, the median pay settlement across the economy rose to 2.4% in the three months to July. This is the highest we have recorded so far in 2017, up from 2% in the previous three rolling periods. The latest figures are based on 75 pay settlements, mostly at organisations in the private sector.

For the full article see http://www.incomesdataresearch.co.uk/subscribers-2/idr-pay-settlement-levels/

Settlements in brief: median at 2% for May

Our latest analysis of pay settlements shows the median falling back to 2% in May. However the interquartile range, where half of awards are set, remains at between 1% and 2.8%. This partly reflects a wide range of pay outcomes, with increases monitored in the latest period ranging from a pay freeze to 10.5%. The analysis is based on 130 pay settlements monitored by IDR in the three months to the end of May.

Pay settlement data - three months to end of May 2017
Whole economyPrivate sector
Median2.0%2.4%
Average2.2%2.5%
Interquartile range1.0 to 2.8%1.9 to 2.9%
Based on 130 settlements covering 3.3M employees in total.

The median had risen to 2.4% in the three months to the end of April, under the influence of more awards worth 3% and above. Many of these were aimed at bringing lowest pay rates in line with the new National Minimum and National Living Wages. Indeed a closer look at private sector awards in the latest period shows that the median here is still at 2.4%.

Our next full quarterly analysis will be in Pay Climate, release date Thursday 7 September.

IDR survey: progress on gender pay reporting

Legislation requiring firms with at least 250 employees to publish their gender pay statistics came into force on 6 April 2017. IDR conducted a survey of subscribers asking what progress organisations have already made in calculating and publishing the relevant statistics. The results show that just under half have calculated the figures while around a third plan to publish their statistics before the formal due date in April 2018. Continue reading IDR survey: progress on gender pay reporting

Assumptions revised about the likely path of inflation

Inflation forecast to rise to 4% by late summer

After the sharp rise in RPI inflation in the year to February, economic forecasters have had to revise their assumptions about the likely path of inflation. Inflation rose to 3.2% in the year to February, up from 2.6% in the year to January. The increases were higher than predicted, and were due to increases in prices for oil and petrol on the one hand, and food on the other. In the case of food prices, increases are mainly caused by the impact of sterling’s depreciation.

Continue reading Assumptions revised about the likely path of inflation