28th November 2017.

Wage Growth Is On Its Way Back!

Pay is finally rising across the UK as unemployment falls to record lows and companies have to raise wages to fill gaps in their workforce, the Bank of England has reported.

According to policy makers, there has been recent evidence that the long squeeze on incomes has finally come to an end.

Despite many officials expecting wage growth to respond to the low unemployment rates, pay in the UK steadied. Factors such as Brexit uncertainty and effects from the financial crisis were influencing this reluctance to commit more money to the workforce.

The recent skill shortage however has led employers to think of new ways to inspire their current workers. British economist, Gertjan Vlieghe observed that building pressure in recruitment has led employers to pay their staff more.

He also found an increasingly stronger confidence within skilled workers, who are now willing to move for jobs with higher pay. This contrasts with the mood a few years ago where fears over unemployment would have driven people to stick with what they had.

Vlieghe further told the Treasury Select Committee of MPs that the record low unemployment is a key factor in the improved wage growth. Joblessness has now fallen to 4.3 per cent, the lowest level in 42 years.

Mr Vlieghe’s colleague Michael Saunders and deputy Governor Sir Jon Cunliffe, joined Vlieghe in front of the Committee, but expressed more caution towards this new information.

Mr Saunders  warned the MPs that the slowed inflow of foreign workers into the UK, on account of Brexit negotiations, could lead to a tightening of domestic conditions and make any change to wages more sensitive.

Furthermore Sir Jon Cunliffe, who had also voted against rising the interest rates earlier in the month,  suggested waiting a little longer to be sure wages are really on the up.

The Credit Protection Association supports any move that may aid workers in the UK. Providing workers with monetary incentives may lead to improved productivity, which has been struggling the past month. However with Brexit uncertainty as it is, CPA understands the caution that deputy Governor Sir Jon Cunliffe expressed, particularly when the Brexit impact on EU workers in the UK is not yet established. We encourage our Members to take a second and third look at their financial position and Brexit provisions before increasing pay. It would not be advisable to reward your staff if that action will damage your cash flow and even your business. 

The Credit Protection Association is a credit management company established in 1914. If you supply goods or services on credit then we can help you!

See all our latest news here!

Keep up to date with the latest news by following us on social media:-

CPA on Linkedin

CPA on facebook

CPA on twitter

Watch the video to find out how CPA can help you!

How to overcome 25 of the most common excuses for non-payment

Click the image to discover step by step advice on how to deal with them!






Discover how to improve your cashflow in 3 steps.

Click the image to find our answer to the question “How can you get paid on time?”





Read our blog – Debt collection agency

Read our Cash Flow Advice

Read about our overdue account recovery service

Read our blog – What is credit management?

Read our blog -What is a credit management company?

Read our blog -Credit Management that works!

Read our blog – How to select a debt collection agency

click to see read about our successes

Please call us on 0330 053 9263 to discuss how CPA can help your cashflow. Alternatively, either email us or use our contact form.

I consent to supplying my personal information that may be used for marketing purposes and agree with the privacy policy.