Bankers Toast Large Pay Rises As Poorest Workers Struggle

Average pay increases in finance and insurance peaked at nearly 20% in February

- Ben Chapman

Bankers and consultants in the City of London have received double-digit pay increases while those on low incomes have seen the value of their earnings plunge, new figures show.

The Centre for Economics and Business Research (CEBR) said the “highest earners now enjoy annual pay growth of 10 per cent, while lowest earners see just a 1 per cent rise”.

Bankers, insurance brokers and corporate lawyers are among those most likely to have secured an inflation-busting pay rise, the CEBR said.

The consultancy said the UK economy was now a “tale of two labour markets”, with the lowest-income workers seeing huge price rises hit their living standards.

Consumer price inflation is expected to spike to a 42-year high of 13.3 per cent after October when households face average energy bills of more than £3,500, with a further increase expected in January.