{"id":123115,"date":"2026-07-18T07:00:00","date_gmt":"2026-07-18T06:00:00","guid":{"rendered":"https:\/\/en.econostrum.info\/uk\/?p=123115"},"modified":"2026-07-18T00:45:34","modified_gmt":"2026-07-17T23:45:34","slug":"the-pay-rise-freeze-2","status":"publish","type":"post","link":"https:\/\/en.econostrum.info\/uk\/the-pay-rise-freeze-2\/","title":{"rendered":"The Pay Rise Freeze: Workers Face Another Cost-of-Living Blow"},"content":{"rendered":"\n

Only one in five employers<\/strong> plan to give staff pay rises<\/strong> above inflation this year, as workers face continued pressure from rising living costs and a weaker jobs market.<\/p>\n\n\n\n

Most Employers Expect Pay Rises Below Inflation<\/h2>\n\n\n\n

Research from the Work Foundation at Lancaster University<\/a> found that many businesses are unlikely to increase wages beyond the current 2.8% inflation rate<\/strong>. The survey of 1,000 business leaders<\/strong> suggests that a large number of workers could see their earnings lose purchasing power if prices continue to rise faster than salaries.<\/p>\n\n\n\n

The findings come as households continue to deal with higher costs, including increases linked to energy and fuel prices following renewed instability in the Middle East.<\/p>\n\n\n\n

\"Pay
Credit : Econostrum<\/figcaption><\/figure>\n\n\n\n

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Businesses Provide Support but Face Their Own Pressures<\/h2>\n\n\n\n

Many employers are introducing additional support measures to help staff manage financial pressures. These include expanded workplace benefits and other forms of assistance. However, around one in seven business leaders said their organisation was not providing any additional support.<\/p>\n\n\n\n

Ben Harrison<\/strong>, director of the Work Foundation at Lancaster University, said economic uncertainty and weak wage growth<\/a> were making it harder for households to manage unexpected increases in costs. He said many families had limited financial flexibility after several years of rising prices and slow wage growth.<\/p>\n\n\n\n

Cost Pressures Affect Both Workers and Companies<\/h2>\n\n\n\n

The report highlights the difficult position facing employers, who are also dealing with higher operating costs. While many businesses want to provide more support for employees, rising expenses are limiting their ability to increase wages.<\/p>\n\n\n\n

The findings come as the UK economy faces pressure from weaker growth and uncertainty across international markets. The Work Foundation said policies focused on economic growth and household support would be needed to address longer-term pressures.<\/p>\n\n\n\n

Aer Lingus Announces Job Cuts and Route Reductions<\/h2>\n\n\n\n

The report comes alongside changes in the aviation sector, with Aer Lingus announcing plans to cut around 500 jobs<\/strong> as part of a cost-reduction programme. The airline, which employs around 6,000 people<\/strong>, said the affected positions could include 90 office roles in Dublin, 140 cabin crew jobs and 70 pilot positions.<\/strong><\/p>\n\n\n\n

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The announcement this morning that Aer Lingus is to cut 500 jobs is devastating news for workers.

The government must engage with management and unions to minimise the number of jobs that will be lost and to ensure impacted workers receive full and fair redundancy packages. pic.twitter.com\/AeUUy0rjhE<\/a><\/p>— Rose Conway-Walsh (@conwaywalsh) July 16, 2026<\/a><\/blockquote>