Workers have seen their pay packets eroded by inflation over the past two years, according to new research.
Compared to 12 months ago, the real value of people's take-home pay is down by an average of £40 per month. Compared to two years ago, it is down by £68 per month, research by payments processing firm VocaLink has found.
According to a report by The Telegraph newspaper, the figures show there has been a long-term decline in consumer purchasing power, with a sizeable gap between the size of people's wage packets and inflation.
Marion King, chief executive at VocaLink, said: "The current inflation rate and sluggish economic growth are having a very real economic impact on UK households. Our index reveals that although take-home pay growth has increased in recent months, the real value of pay is still far weaker than a year ago."
Separate research released by the same company earlier this month claimed the average private sector annual pay rise last month was 2.5 per cent, up from 2.2 per cent in September. However, again this was less than half the 5.4 per cent annual inflation rate tracked by the Retail Prices Index for October.