Inflation has stayed in double digits, at 10.1%, according to the latest official data published this morning. In short, it's proving far more stubborn than economists anticipated. Could this see staff continue to demand more pay rises? Are companies in a financial position to even offer them? Are you seeing people ask for further pay rises after already receiving one perhaps earlier in the year?

Inflation and pay demands

The response to the latest inflation figures seems hysterical when in reality we know that May will be the month we see a significant fall in price rises and then, month-on-month, it will tumble for the rest of the year. Food price increase will be more than offset by energy prices throughout the rest of the year so pay increases should bear this in mind. 

Samuel Mather-Holgate

I have been working in financial services for twenty years. My specialism is later life advice, focusing on inheritance tax planning, pension advice and equity release. 

An increase in insolvencies reported earlier this week would suggest that companies are increasingly falling victim to a series of rising costs across the board and can’t continue to be relied upon to solve all of the cost of living problems this country is facing. Energy prices, logistics crises, loss of key markets due to Brexit, loss of key workers in the economy due to Brexit, the turmoil of the Covid lockdowns and now in this financial year a steep percentage rise in minimum wage and Corporation Tax liability is the landscape in which lots of businesses have been operating in. It is natural that employees would look to their employers for pay rises to help them with their personal financial situations, and employers have a duty to care for their staff equitably, but at some point the well will run completely dry.

Debbie Porter

The Managing Director of Destination Digital Marketing, the consultancy works on a wide variety of client projects across different industry sectors but specialising in FMCG, retail and consumer brands.  With over 25 years experience in the Internet Industry, Debbie has worked across a large range of digital technologies for business in a wide range of roles. 

Having worked for large companies such as Reed Elsevier, the Daily Mail and BT during her career, Debbie then went on to run her own business and has been running an independent digital marketing consultancy for over 15 years.  


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Is Inflation Killing the Entrepreneurial spirit? As inflation refuses to move from its high double digit position, business owners are feeling the squeeze as they struggle to keep up with increasing costs and the addition of pay demands from employees to keep up with inflation. This puts a strain on business finances and may even force business owners to cut jobs or reduce working hours, leading to even greater financial hardship for all involved. Employees argue that they have a right to demand higher wages in the face of rising inflation. They point out that their salaries have not kept up with the cost of living and that they are struggling to make ends meet. Without a fair wage, they may be forced to take on additional jobs or turn to debt just to get by. Ultimately, finding a solution that satisfies both parties will be crucial for maintaining a healthy and thriving UK economy.

Bradley Lay is a Global Speaker and Business Investor. Beginning his career as a finance professional in the corporate world, he started with Morgan Stanley, before joining a £12m revenue construction business which he helped grow to £150m and successfully exit. As a result of the last two decades of hard work, he worked his way to the position of Group CFO. Fuelled by a desire to help others learn this “secret”, Bradley took to the stage to maximise outreach, with the goal of reaching as many business owners within the construction sector as possible, in showing them how they can create a life-changing capital event through a business sale that gives them true financial wealth and life freedom. Bradley says that he feels blessed to have started to build a reputation as a highly sought after speaker, mentor and business investor. His investments through his own private equity, Peak Capital Group, when acquiring businesses are simple, pain-free and collaborative within the construction industry, which has so far created several millionaires to date and counting!

Inflation and pay demands

3 responses from the Newspage community
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Samuel Mather-Holgate

Independent Financial Adviser at Mather and Murray Financial

Debbie Porter

Managing Director at Destination Digital Marketing

Bradley Lay

Founder at Peak Capital Group

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3 responses from the Newspage community
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