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The effect on Salaries if they were raised by the Monthly Inflation Rate in the UK in April of each year for staff on the top of Band 5 and 6

Published 31st October 2022 by GMB EMAS
YearApr
20229.011%
20211.526%
20200.767%
20192.118%
20182.382%
20172.711%
20160.287%
2015-0.121%
20141.773%
20132.421%
20123.044%
20114.478%

BAND 5

A staff member at the top of band 5 throughout 2010 earned a basic annual salary of £27534

If that salary had increased by the ONS inflation rate reported in April of each year (starting with an increase in April 2011) that member of staff would, as of April 2022, now be earning a basic salary of £37065.18

Currently, staff at the top of band 5 are earning £32934 

This is a real term cut over the 12-year period of £4131.18 or equal to 12.54%.

EXAMPLE

A member of staff earning £27534 (spine point 23 – top of band 5) during 2010 and who had a rise in April 2011 equal to reported inflation for April 2011 would have seen their salary increase to £28766.97. The actual rise in April 2011 was to £27625 which was a real term pay cut of £1141.97.

BAND 6

A staff member on the top of band 6 throughout 2010 earned a basic annual salary of £34189

If that salary had increased by the ONS inflation rate reported in April of each year (starting with an increase in April 2011) that member of staff would, as of April 2022, now be earning a basic salary of £46023.87

Currently staff at the top of band 6 are earning £40588 

This is a real term cut over the 12-year period of £5435.87 or equal to 11.81%

EXAMPLE

 A member of staff earning £34189 (spine point 29 – top of band 6) during 2010 and who had a rise in April 2011 that was equal to reported inflation for April 2011 would have seen their salary increase to £35719.98. The actual rise in April 2011 was to £0 which was a real-term pay cut of £1530.98. This is because staff at the top of band 6 did not see a rise in basic salary until April 2013 when their salary rose to £34530. If they had received a rise year on year (04/11, 04/12, 04/13) the salary would have risen to £37698.40 in April 2013. This means that they suffered a real terms pay cut over the first 3 years of the conservative government of £3168.

The top of bands 5 and 6 have been used for illustrative purposes but all bands and spine points on those bands will have felt a significant loss. And as these figures only assume a rise in line with inflation in each April they do not include any additional percentages applied so the losses could be far greater.

This shows that the real terms pay cuts suffered by staff started back with the election of the conservative/Liberal Democrat coalition and has not been addressed by either subsequent Pay Review Body recommendations or by subsequent government changes.

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