Pay packets have experienced one of the largest falls in growth since comparable records began in 2001.

In real terms, adjusted for inflation, total pay (including overtime and bonuses) over the past year fell by 2.4% and regular pay fell by 2.9%, according to data from the Office for National Statistics (ONS).

This is slightly smaller than the record 3% fall in real regular pay experienced from April to June 2022.

The decrease in real wages comes despite an overall increase in wages.

Inflation has been higher recently than at any period since the early 1980s and was 9.9% in August, fuelled by energy and food costs. It was down from 10.1% in July.

Average total pay (including bonuses) was 6.0% higher and regular pay (excluding bonuses) was 5.4% up among employees during the June to August 2022 period.

The unemployment rate for June to August 2022 decreased by 0.3 percentage points on the quarter to 3.5%, the lowest rate since December to February 1974.

The number of those who are economically inactive because they are long-term sick increased to a record high, the ONS said.

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