Salary calculator: How big a pay rise you need in Aylesbury to keep up with UK inflation

National World has developed a calculator to see how great a pay increase Aylesbury residents would need to avoid being poorer.

By James Lowson
Friday, 20th May 2022, 2:03 pm

New Office for National Statistics (ONS) findings revealed the UK is facing its highest inflation rate since records began 40 years ago.

The Consumer Prices Index (CPI) rate soared to 9% last month, the highest mark recorded.

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calculator (Photo by Matthew Horwood/Getty Images)

Everyday goods and services in the UK are on average 9% higher in price than they were 12 months ago.

So, unless wages increase at the same rate, Aylesbury residents will be getting poorer.

ONS bases its figures on a weighted scale where more precedence is given to more expensive items.

A 10% increase in the price of petrol for instance would have a much bigger impact on inflation than tea bags, because consumers typically spend more on petrol than tea.

It also reaches its findings by checking prices on a wide variety of goods.

National World has examined the ONS data to find that workers in every part of the UK had a real-terms pay cut this April compared to last, with earnings around 3% lower on average after adjusting for inflation.

In some parts of the UK employees lost up to £150.

The figures exclude self-employed people, and capture bonuses as well as regular pay.

You can use National World’s attached interactive map to see how the inflation rise is affecting pay in Aylesbury.

National World’s real terms calculator can discover just how much people would have to earn to avoid losing out.

It is based on take home pay and how much it would have to increase, the calculator also shows how out of pocket each individual is.

With inflation at 9%, a worker who took home £1,000 per month after tax and other deductions last April would have had to earn £1,089.92 in their pay packet this April for their pay to have remained stable.

Calculations by the Institute for Fiscal Studies (IFS) show he poorest households – who spend a bigger chunk of their income on food and energy, and less on non-essential things – faced inflation of up to 10.9% in April.

IFS says that inflation rose by 7.9% for the richest UK households.

The calculator does not take into account National Insurance, and many people’s contributions increased last month.