For many, the high cost of living in the UK negatively impacts their quality of life. Although average inflation is down to 2.7% in 2024, many feel this number bears little correlation to what they experience daily, producing demands for salary increases. For this feature, the Global Payroll Association has researched how much of a pay rise the nation’s workers need to keep pace with the average inflation rate in 2024.

Pay rises never seem to be out of the headlines for long. Earlier this year, it was reported that trade unions representing London Underground Transport workers have “overwhelming accepted” a pay rise, which would see increases of up to 11%, significantly higher than the inflation rate.

However, London Underground workers aren’t alone in getting a bumper increase. According to Global Payroll Association (GPA) research, workers at the e-commerce platform Amazon would be seeing an increase in their pay of nearly 10%, joining other notable (agreed and expected pay rises) in 2024:

The Co-op (7.3% to 10.1%)
Tesco (9.1%)
Ikea (5%-10%)
Asda (8.4%)
Currys (9.5%)
Lidl (5.4% to 14%)
Sainsbury’s (9.1%)
John Lewis (10%)
Primark (9.1%)
Holland and Barrat (9.1%)

The average person in the UK receives an income of £35,404, with those working in London averaging £47,301. These numbers would have appeared high just a couple of decades ago*. However, times have changed, and in this debt-based economic world, coupled with high living costs, people feel they need to be paid more.

The GPA Data
Based on the average salary of those working outside of London, employees will need to negotiate a pay rise of £956 in 2024 to ensure their wage keeps pace with the current level of inflation. Those working in London, with their higher averages, should look to negotiate a pay increase of £1,277 to ensure that they keep pace with the current average rate of inflation in 2024.

Below, the GPA has broken down the numbers on a regional basis to establish how much of a pay rise is needed to keep pace with this year’s current inflation rate would need to be:

Scotland – £910
West Midlands – £894
South West – £885
North West – £873
Northern Ireland – £863
East Midlands – £860
Yorkshire and the Humber – £854
Wales – £823
North East – £814

*We referred to a couple of decades ago earlier in this feature. To add context, in 2004, the average UK salary was £22,011 p.a; in 2014, it was £27,215; and today (2024), it stands at £35,404, which is the highest it has ever been, spiking from £31,285 in 2021.