Largest real term pay cuts revealed
Job roles hit the hardest by real term pay cuts revealed
The latest research by tax specialists, RIFT Tax Refunds, has revealed that after adjusting for inflation, it’s doctors, firefighters, teachers and nurses who have seen the biggest pay cut in real terms over the last year.
RIFT Tax Refunds analysed gross salary data across 24 of the most common professions within the UK, looking at the annual change in pay between 2021 and 2022 once adjusted for inflation.
The figures show that it’s doctors who have seen the largest pay cut in real terms. Between 2021 and 2022, the average gross salary for a doctor fell from £49,497 to £44,768. However, after adjusting for inflation, the research from RIFT shows that their 2021 salary was equivalent to £56,107, falling to £46,514 in 2022, a real term pay cut of almost £10,000.
Firefighters have seen the second largest pay cut in real terms, with their annual earnings falling by £2,628 after adjusting for inflation.
Teachers (-£2,323), nurses (-£2,263) and social workers (-£2,092) have also seen their gross earnings reduce by more than £2,000 a year in real terms.
Other professions to have seen a real term pay cut include police officers, plumbers, electricians, taxi drivers, bin men, accountants, postmen, cleaners and members of the clergy.
In contrast, veterinarians have seen the largest real term pay increase, with their inflation adjusted gross income climbing by £1,756 on an annual basis.
Beauticians (£1,645), bar staff (£1,459) and florists (£1,079) have also seen a real term pay rise of over £1,000 over the last year
Other professions to have seen a bump to their annual earnings even after adjusting for inflation include fitness instructors, chefs, dry cleaners, hairdressers, waiters and waitresses and bus drivers.
CEO of RIFT Tax Refunds, Bradley Post, commented:
“Despite a steady level of income growth in recent years, many professions are now far worse off than they were just a year ago, as the instability of the wider economic landscape and high rates of inflation have not only eradicated any increase in pay, but left them severely in the red.
With the nation also tackling the worst cost of living crisis in recent history, it’s hardly surprising that we’ve seen such widespread strike action across many sectors, as households struggle to make ends meet in the current economic climate.
Those within the public sector have been some of the worst hit and this is particularly worrying given the vital role they play in society and when you consider the heroics they displayed during the pandemic.”
