UK wage growth accelerates in final quarter of 2024

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Wage growth accelerated at the end of last year, according to official data that will add to pressure on the Bank of England as it attempts to hold inflation down.

Average weekly regular earnings in the three months to December were 5.9 per cent higher than a year earlier, up from 5.6 per cent in the three months to November, the Office for National Statistics said on Tuesday. The figure was in line with economists’ expectations.

The acceleration in wage growth was stronger in the private sector, where average earnings, excluding bonuses, grew 6.2 per cent. Wages in the public sector grew by 4.7 per cent.

At the same time, payrolled employment decreased by 14,000 between November and December and was 3,000 lower in the three months to December than in the previous quarter, the ONS said, citing HM Revenue & Customs data.

Early estimates for January showed payrolled employees’ numbers were up 21,000 from December.

The ONS’ director of economic statistics Liz McKeown said: “Growth in pay, excluding bonuses, rose for a third consecutive time, with increases seen in both the private and public sector.”

This is a developing story