Pay rises at fastest pace for over 20 years, but below inflation

Wages have grown at the fastest rate in over 20 years, but are still failing to keep up with rising prices.

Regular pay, which excludes bonuses, rose at an annual pace of 6.4% between September and November, official figures show.

It marks the fastest growth since 2001, excluding the pandemic, when people got big rises after returning to work from furlough.

However, when adjusted for rising prices, wages fell by 2.6%.

The cost of living is currently rising at its fastest rate in almost 40 years, largely due to the war in Ukraine.

Energy and food prices have shot upwards, leaving many people struggling to pay their bills.

"The real value of people's pay continues to fall, with prices still rising faster than earnings," said Darren Morgan, director of economic statistics at the Office for National Statistics (ONS).

"This remains amongst the fastest drops in regular earnings since records began."

The gap between wage growth in the public and private sector also remains near a record high, with private sector wage growth of 7.2% almost double that of the 3.3% increase in the public sector.