VocaLink Take Home Pay Index mid-month alert
Tuesday, January 17, 2012
More pressure on consumers during Christmas 2011
than Christmas 2010
17 January 2012: Payments provider, VocaLink,
reveals that Christmas 2011 put a greater strain on consumers'
wallets than Christmas 2010, as the gap between inflation and take
home pay widens.
All VocaLink Take Home Pay sectors are facing smaller
pay packets than during the same period last year. Real take
home pay was down by an average of £35 in November 2011, compared
to November 2010. The public sector is the worst off, with
pay down on average by £49, compared to the same time last
year.
The real impact this has on consumers can be felt when these
figures are compared to inflation rates. November 2011 saw
inflation of 4.8%, more than double the Bank of England target of
2.0%. This is compared to just 3.3% inflation during November
2010.
This squeeze on the UKs' wallets, when combined with the harsh
trading environment seen in the months leading up to Christmas
2011, including increased competition from Internet retailers, may
go some way to explaining why January 2012 has seen notable
household retail brands forced into administration.
The full report and latest Take Home Pay Index results can be
downloaded from www.takehomepay.co.uk