Jeremy Hunt hails cost

Jeremy Hunt hailed a cost-of-living boost for Brits today as figures showed wages continuing to rise faster than inflation.

Official numbers revealed that regular pay was increasing by 2.4 per cent annually compared to the headline CPI in the quarter to March.

That was the quickest pace in more than two years, and could give the Bank of England pause for thought as it prepares to cut interest rates within months.

However, the wider labour market looks to be cooling with unemployment nudging up and vacancies dipping. Inactivity also remains stubbornly high despite a government drive to get people back into work.  

ONS director of economic statistics Liz McKeown said: 'We continue to see tentative signs that the jobs market is cooling, with both employment from our household survey and the number of workers on payroll showing falls in the latest periods.

'At the same time the steady decline in the number of job vacancies has continued for a twenty-second consecutive month, although numbers remain above pre-pandemic levels. 

'With unemployment also increasing, the number of unemployed people per vacancy has continued to rise, approaching levels seen before the onset of COVID-19.

'Earnings growth in cash terms remains high, with the recent falls in the rate now levelling off while, with inflation falling, real pay growth remains at its highest level in well over two years.'

Mr Hunt said: 'This is the 10th month in a row that wages have risen faster than inflation, which will help with the cost-of-living pressures on families.

Jeremy Hunt (pictured with Rishi Sunak yesterday) hailed a cost-of-living boost for Brits today as figures showed wages continuing to rise faster than inflation

'While we are dealing with some challenges in our labour supply, including pandemic impacts, as our reforms on childcare, pensions tax reform and welfare come online I am confident we will start to increase the number of people in work.'

Labour frontbencher Alison McGovern said: 'The morning after Rishi Sunak told us his plan was working, these damning new figures prove that things are just getting worse: employment down, economic inactivity up and unemployment rising.