Bloomberg News

U.K. Pay Growth Accelerates to 10-Month High, VocaLink Says

July 04, 2012

Take-home pay growth at Britain’s largest publicly traded companies reached a 10-month high in the second quarter, VocaLink Ltd. said.

Incomes after tax and other deductions climbed 2.7 percent from a year earlier, compared with 2.3 percent in the three months through May, the group said in a statement in London today. Wage growth at manufacturers accelerated to 4.5 percent from 3.9 percent.

Pay growth for public workers slowed to 0.5 percent from 0.6 percent, leaving the gap with private workers at a record.

“This month’s data goes to show the growing disparity that exists between private and public-sector wage growth,” said VocaLink Chief Executive Officer David Yates. “What we are witnessing now is the full impact of public-sector wage freezes and private-sector stimulus.”

VocaLink, which processes 90 percent of British salaries paid directly to bank accounts, uses salary-payment data from more than 200 members of the FTSE 350 Index and more than 600 government-related organizations for the report.

To contact the reporter on this story: Fergal O’Brien in London at fobrien@bloomberg.net

To contact the editor responsible for this story: Craig Stirling at stirling1@bloomberg.net


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