Thousands of workers at accountancy giant PwC will get a pay rise of almost 10 per cent to address the cost of living crisis and retain staff, it has been reported. It is understood that half of the firm's UK workforce - which numbers more than 20,000 - would get an increase of at least 9%, with 70% getting a rise of 7% or over.
PwC is investing in excess of £120 million in funding pay rises, the BBC reports. It is also said to be allocating another £138 million to cover the cost of bonuses this year - up £10 million on the previous year.
Kevin Ellis, PwC's chairman, said the company "can't ignore market pressures" and aims to "ensure pay at every level is as competitive as possible". "We know pay will be an increasingly important consideration given rising living costs - we want to stay competitive and continue attracting the best talent and skills from across the UK," he said.
Salaries for many of PwC's entry-level programmes will reportedly increase too. It is believed starting salaries in audit roles are going up by 10% and consulting graduates will get a rise of just over 8%.
Inflation reached 9.1% in the UK in May, the highest level for four decades. But earlier this month, Prime Minister Boris Johnson warned the Government would “fan the flames of further price increases” if it tried to spend its way out of the cost-of-living crisis.
“We can’t fix the increase in the cost of living just by increasing wages to match the surge in prices. I think it’s naturally a good thing for wages to go up as skills and productivity increase – that’s what we want to see,” he added.
“But when a country faces an inflationary problem you can’t just pay more and spend more, you have to find ways of tackling the underlying causes of inflation. If wages continue to chase the increase in prices then we risk a wage-price spiral such as this country experienced in the 1970s.”
Unions reacted with anger, with the TUC accusing Mr Johnson of abandoning his commitment to build a “high-wage economy” with “nonsense” claims about raises. But the Prime Minister warned that big pay rises could create “stagflation” – inflation combined with stagnant economic growth, which blighted the 1970s.
Members of the RMT union working on the railways took part in three days of strike action this week as part of a dispute linked to pay. The biggest teachers’ union is also warning of industrial action over pay and workload unless the Government responds to its concerns in the next few months.
NHS nurses backed strikes in a vote in December 2021 but failed to secure the 50% turnout required before industrial action can take place. However, rising inflation and restraint on public sector pay has sparked fears another ballot could be more successful, leading to a walkout among NHS staff.
