17th May 2022

Victor Trokoudes, chief executive and co-founder of investing and savings app Plum

“The latest employment and wage data from the ONS shows that wages are still firmly behind inflation which will leave households struggling to make ends meet as they battle rising costs of essential spending. 

"The reality for many households is having to slash everyday spending. While some may be receiving a boost to their pay, it still doesn't go far enough to keep pace with inflation. There is also a big discrepancy between private sector pay growth at 8.2% and public sector growth at 1.6%. Interestingly, private sector growth is largely down to bonuses which is not something the average person can safely rely on in the future, if their finances are to keep up with growing inflation. 

“Of note too is the average hours worked by part-time workers are at a record high - an indication that workers are trying to find ways to increase their pay packet each month. This shift in part-time workers shows workers are more willing to sacrifice their lifestyle just to make ends meet and cover soaring costs. 

"Beyond increasing earnings, the best defence against rising costs now is good budgeting and making savings work as hard as possible. It is uncertain how long inflation will continue and households need a safety net to cover unexpected costs. Adding to this and building long-term savings through investments is the best way to protect the value of savings from being eaten away over time."