UK employers planning smallest pay rises since 2013

British employers plan to increase pay at the weakest rate since 2013, a survey shows, offering poor prospects for British households already strained by higher inflation since last year’s Brexit vote.

Employers on average expected to raise basic pay awards in the year ahead by 1%, down from 1.5% in the previous quarter’s survey, the Chartered Institute of Personnel and Development (CIPD) said.

Last week, Bank of England Governor Mark Carney warned that households faced a challenging time, as wage growth was set to turn negative in inflation- adjusted terms.