Getting a pay rise is a great thing, right? Even if it’s not a massive bump in your salary, it’s nice to feel recognised and rewarded for your hard work.

Except these days, a small pay rise isn’t quite as good as it seems. With the cost of living rising and inflation teetering at ever greater heights, a modest salary increase won’t go as far as you might initially imagine. It’s all too easy to get placated by the promise of a raise, rejoice over a slightly bigger number on your paycheque, then quickly realise that your cash is disappearing at just as rapid a rate as before.

And this is an all too common scenario. According to research from Aspire, the majority of pay rises in the last year failed to keep up with the rate of inflation. This means that while workers might initially feel like they’re getting more money, the reality is their pay is stagnant or even dropping in terms of value.

No wonder, then, that the number of people looking for a new job is rising. The study found that less than a quarter of pay rises in the UK matched inflation, which may be a contributing factor in the findings that in the first quarter of 2023, two-thirds of workers said they are currently seeking a new role – a 13% increase compared to the final quarter of 2022.

Most workers (52.1%) who received a pay rise last year were handed one worth up to 5% of their salary – less than half of the current rate of inflation. Nearly one in four (24.4%) were awarded a pay rise between 6-10%, which still falls short of the UK’s existing inflation rate.

The majority of pay increases aren’t enough to keep up with inflation, says study