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Fall in disposable income highlights growing cost of living crisis - CIPD

Responding to the ONS statistics on economic well-being, Charles Cotton, pay and reward adviser at the CIPD, the professional body for HR and people development said:

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“The 2% fall in real household disposable income should serve as a warning sign for government about the ongoing squeeze on living standards. The ONS is clear that increased prices are to blame for this fall, and rising inflation combined with flatlining pay likely means this situation is going to get worse before it gets better.

“Falling real pay will reduce employee financial well-being, which can have an impact on businesses in terms of reduced productivity as well as on employees, their families and society.

“Employers need to look at their business strategy and how they design work and jobs to boost productivity and increase pay and benefits in a sustainable way. Government and employers need to invest properly in the skills and training of the workfroce to boost productivity and help support workers who are currently seeing their living standards squeezed.”