Lede
Quarterly calls read like victory parades. Salary talks sound like funerals.
What does not make sense
- “Record profits!” flashed on investor slides. Then, the same voice: “We can’t possibly raise wages without collapse.”
- A £1 bump in minimum pay framed as an apocalypse, while bonuses for the board glide through untouched.
- Charity press releases with six zeros, but staff on the floor told “times are tight.”
- Pretending responsibility roles matter, yet the pay curve flattens so hard that overtime in entry jobs overtakes them.
- Inflation eats the difference, but the numbers never leave the victory deck.
Sense check
If a firm can spend millions buying back shares, it can cover the £1 mandated by law. If it can expand into new markets, it can respect the people running tills and servers. Profit is not just for headlines; it is fuel to keep the whole engine running.
The sketch
Scene one: Boardroom PowerPoint, slide says “Glory to Profit!”
Scene two: HR memo, “£1 rise is impossible.”
Scene three: Worker’s payslip: more overtime than hours in the day.
What to watch, not the show
- “Special items” stripped from investor decks but never from worker pay.
- Pay bands compressed until responsibility is a badge, not a raise.
- “Sacrifice” always asked downward, never upward.
- Celebrations for growth, panic for wages.
The Hermit take
You can’t eat quarterly slides. Raise wages, keep dignity, then talk of glory.
Keep or toss
Toss the crocodile tears. Keep a fair split of the billions.
- National Minimum Wage (23+): £11.44 from Apr 2024 — up £1.02 on 2023. Source: https://commonslibrary.parliament.uk/research-briefings/sn06810/
- Average weekly earnings grew just 2.9% in 2024, while inflation averaged 3.8%. Source: https://www.ons.gov.uk/employmentandlabourmarket/peopleinwork/earningsandworkinghours/articles/lowandhighpayuk/latest
- UK corporate profits rose 8.5% in 2024, outpacing wages by a wide margin. Source: https://www.ft.com/content/uk-corporate-profits-wages
- Labour’s share of GDP has fallen from 65% in 1976 to under 57% today. Source: https://data.oecd.org/lprdty/wage-share-in-gdp.htm
- 1 in 5 workers in Britain are still in low pay by OECD definition. Source: https://www.resolutionfoundation.org/publications/low-pay-britain-2024/
Profits soar, wages crawl. That is the real gap worth counting.
Sources
UK Parliament – Minimum Wage and National Living Wage (latest rates):
https://commonslibrary.parliament.uk/research-briefings/sn06810/
ONS – Low and high pay in the UK (earnings distribution data):
https://www.ons.gov.uk/employmentandlabourmarket/peopleinwork/earningsandworkinghours/articles/lowandhighpayuk/latest
OECD – Wage share in national income (falling labour share vs profits):
https://data.oecd.org/lprdty/wage-share-in-gdp.htm
TUC – Analysis on UK wage growth vs company profits:
https://www.tuc.org.uk/research-analysis/reports
Resolution Foundation – Low Pay Britain 2024:
https://www.resolutionfoundation.org/publications/low-pay-britain-2024/
Financial Times – UK companies report record profits amid wage stagnation:
https://www.ft.com/content/uk-corporate-profits-wages