Headlines: August 5th, 2004

Earnings of public sector managers rose by 5.3 per cent in the last year, from 39,580 pounds to 41,694 pounds. This puts them behind managers in the chemical industry who top the ‘earnings league table’ with 55,359 pounds, but ahead of retail managers at the bottom of the league with 35,748 pounds. The UK average pay increase for all employment is 4.2%. Inflation currently stands at 2.3%.The survey of management pay by the Chartered Management Institute and Remuneration Economics also found that the bonus element of pay had declined in the year. The average total bonus fell by almost £500, from 3,955 pounds in 2003 to 3,509.

Although the average income for all managers is now 42,050 pounds compared with 4,067 pounds in 1974, this rate of increase has not kept pace with spending on essentials such as housing, or consumables such as beer. Thirty years ago the average UK house cost 9,900 pounds against 162,000 pounds today and a pint of beer could be bought for less than 7 per cent of today’s average price – 17pence against 2.50 pounds.