Real regular wages have fallen by 2.8% amid the cost of living crisis, the fastest rate of decline since records began in 2001, according to data from the Office for National Statistics.
Measured over the three months to May 2022, the average pay, including bonuses, fell by 0.9%, although the unemployment rate remained steady at 3.8% over the same period.
Nye Cominetti, senior economist at the Resolution Foundation, said:
Despite healthy wage growth in the private sector, near double digit inflation means that their real-terms value is falling at a record rate.
"But while everyone is experiencing pay packet pain, the jobs market at least remains resilient with unemployment close to a record low, inactivity falling and employment rising.
Chancellor Nadhim Zahawi said:
"I am acutely aware that rising prices are affecting how far people's hard-earned income goes, so we are providing help for households through cash grants and tax cuts,"
"We're working alongside the Bank of England to bear down on inflation, providing support worth £37 billion this financial year for the cost of living, and investing in skills to help people get into work and progress."
The Government has started distributing cost of living payments to lower income earners across the country, the first payment of £326 already being paid out.
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