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What are your prospects for a pay rise this year?

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Well here we are at that time of the year, when we are all having to get our head around returning to work once again. It feels depressing for some of us, has comparisons to a hangover for others and is a combination of both for most!

But what choice do we have? We check how the bank balance is looking now and perhaps it’s not in as healthy position as it was before the Christmas holidays. 

Shelter, the charity campaigning against homelessness and bad housing, have just released some disconcerting results from a recent survey. It suggests that one in nine adults living in England and Scotland fear they cannot afford this month’s mortgage or rent demand.

These figures were released the same time as the Money Advice Trust polled 2,000 participants. Their findings confirmed that of Shelter revealing one in eight may expect to suffer a similar fate after overspending throughout the festive season.

According to official figures posted by the Office for National Statistics, credit cards, loans and overdrafts (all coming under the bracket of ‘consumer credit’), was at it’s highest in six years in the Christmas build up. November showed an increase of £1.3billion.   

All these articles regularly posted throughout the media will no doubt cause people to think very deeply about their expenditure in the not too distant future and how their income will cope with it. So will our salaries be able to keep up with our lifestyles and can we expect to experience wage growth this year?

You can compare the average salary in 2014 in a variety of different professions and find out what percentage they altered from the previous year.

In August last year the Bank of England suggested that they will keep interest rates at 0.5 per cent for longer because they anticipated wages in 2014 would grow at 1.25 per cent, half of what they anticipated a few months earlier.

Data released in December by the ONS surprised a few analysts as it showed that October’s average weekly wages had recorded an annual rise of 1.4 per cent, 0.4 per cent above the cost of inflation.

Dr. Martin R. Weale CBE, a member of the the BOE’s Monetary Policy Committee was feeling much more upbeat as he spoke to the Money programme.

Dr. Weale told the BBC Radio 5 live show, “When I go and visit businesses throughout the country, I find that they are talking of pay increases in a way quite different say from what I was hearing early in the year, certainly this time last year.”

The British economist who joined the MPC in 2010 added, “I’m getting a more general sense now that people are talking about pay increases which are materially higher than they’d offered in the past, whereas a year ago I would come across quite a few firms saying they were going to have a pay-freeze.”

According to ECA International, 2015 will see lower real wage increases in the UK. Their research ranks Britain joint 8th for European nominal salary increases and 16th after inflation (real wage increase). 

James Sproule, chief economist from influential business group the Institute of Directors (IoD) predicts that UK wages will continue on an upward trend, but only at around 2 to 3 per cent, in accordance with productivity and corporate performance.  

Chief financial officers (CFOs) for leading British businesses predict the consumer squeeze will ease as they forecast wages in their companies will rise by 2.9% in 2015. This forecast is well over double the expected Consumer Price Index (CPI) inflation rate of 1.3 per cent.

If the festive season has left you needing a short-term financial boost, then you can apply right here 

New short term loans regulations brought in by the FCA are now in play and that includes a limited daily price cap of 0.8 per cent of the amount borrowed which helps reduce the former rate substantially. 

Other rules are also in place to protect the consumer, including lenders not being able to charge borrowers more than double the amount they originally borrow, whatever the circumstances. 

About the author

David Griffin David Griffin trained as a graphic designer and now helps PaydayLoan123 with social media. He is a born and bred Londoner who has recently moved out of the capital and is probably missing it a little too much. He enjoys fishing, playing golf and working out at the gym, when he feels energetic enough!

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