Public sector pay freeze/Inflation calculation

Hitchen17

Hi all,

So I'm trying to get some information together, part of which is trying to work out how much money I've missed out on as my wages have not been rising with inflation for some time.

From 2013 I was on £29,947. How would I work out how short I am per month using the inflation rates and the public sector pay freezes and the 1% pay cap.

Any help is much appreciated.

Cheers.

BadHamster

Today
£33,469
January 2013
£29,947
The cost of goods and services increased by 11.8% over this period.
Your £29,947 would need to have grown by an average of 2.5% per year, just to have kept pace with inflation. If you achieved a lower rate of growth, the real value of your money would have fallen.

Figures based on the Retail Price Index (RPI) as at August 2017. Source: Office for National Statistics.

BadHamster

From. hl inflation calculator. Google it can't post links

GreatApe

Hitchen17 wrote: »

Hi all,

So I'm trying to get some information together, part of which is trying to work out how much money I've missed out on as my wages have not been rising with inflation for some time.

From 2013 I was on £29,947. How would I work out how short I am per month using the inflation rates and the public sector pay freezes and the 1% pay cap.

Any help is much appreciated.

Cheers.

This is easy the answer is £0, you've not lost anything.

If I go ask for a pay rise of £10,000 and my employer says no I haven't lost £10,000

Hitchen17

Pretty certain I said I was just after the information. Zzzzz...

Herzlos

GreatApe wrote: »

This is easy the answer is £0, you've not lost anything.

He has lost out thought, as his pay freeze has essentially meant a pay cut in line with inflation for the last 5 years - his salary is worth less in the real world than it was in 2013. But that's not what he asked, anyway.

ukcarper

BadHamster wrote: »

Today
£33,469
January 2013
£29,947
The cost of goods and services increased by 11.8% over this period.
Your £29,947 would need to have grown by an average of 2.5% per year, just to have kept pace with inflation. If you achieved a lower rate of growth, the real value of your money would have fallen.

Figures based on the Retail Price Index (RPI) as at August 2017. Source: Office for National Statistics.

Not quite as bad as that though as you have used RPI, CPI is Lower £32,147 it’s difficult to say what is most relevant, also tax codes have increased so take home pay higher by about £600.

Comms69

Hitchen17 wrote: »

Pretty certain I said I was just after the information. Zzzzz...

Pretty sure it's a public forum, where anyone can post.


You are ofcourse free to go and pay someone to work it out and then dictate what they do and don't say.....

Thrugelmir

ukcarper wrote: »

Not quite as bad as that though as you have used RPI, CPI is Lower £32,147 it’s difficult to say what is most relevant, also tax codes have increased so take home pay higher by about £600.

Employee pension contributions have increased, likewise employees national insurance. There's a slow but subtle correction to public sector pay.

Rather like Mr Brown's infamous budgets. The bad news was always written into the small print of the previous years budget (NIC increases for example). Therefore never made the headline news. People were pickpocketed without ever realising that they had been.

ukcarper

Thrugelmir wrote: »

Employee pension contributions have increased, likewise employees national insurance. There's a slow but subtle correction to public sector pay.

Rather like Mr Brown's infamous budgets. The bad news was always written into the small print of the previous years budget (NIC increases for example). Therefore never made the headline news. People were pickpocketed without ever realising that they had been.

I make a mistake it’s about £450 but that takes into account NI I used a tax calculator for both years. How much have pension contributions increase and does that apply to all public sector employees.

ukcarper

For sake of accuracy in 2013 assuming 5% pension contribution take home pay would have been £21,985 increasing to £22,447 now.

Using cpi £21,985 is equivalent to £23,620 now so almost £100 a month worse off.