The Work Foundation at Lancaster University responded to the labour market figures for October 2026 released by the Office for National Statistics. Aman Navani (Senior Research and Policy Analyst, Work Foundation at Lancaster University) commented:

“Today’s labour market figures reveal the Chancellor faces a significant challenge at the Budget as subdued private sector wage growth and rising prices means millions of workers are still waiting for recent economic growth to reach their pay packets.

“Early public sector pay awards have helped lift overall nominal wage growth to 3.7%, but average real earnings for private sector employees are £1.60 per week lower than a year ago. This threatens to prolong the squeeze on living standards for millions of working people, with Work Foundation research indicating just 22% of employers plan above-inflation pay rises this year.

“As energy and fuel spike this winter, many households will face difficult decisions this winter around driving less, turning off the heating, taking shorter showers or cutting back at Christmas to keep their finances on track. The weakening jobs market adds to the pressure, with declining vacancies limiting the opportunities many workers have to secure better pay by switching jobs.

“The Chancellor must use next week’s Budget to protect the living standards of those under greatest pressure. That means targeted help with essential household costs for those most under pressure, and action to support businesses to create more secure, better-paid jobs.

“The reality is that recent economic growth will mean little if it doesn’t translate into better living standards for millions of working people across the country.”