FAMILIES don't know how they will make ends meet this winter as new figures show a cut to real wages in the cost of living crisis.

Average wages in Southampton have risen by less than seven per cent in the last year, but this is not keeping up with soaring inflation.

The figures from the ONS show that the average monthly wage in Southampton was £2,044 in August.

This is compared to £1,929 the year before, meaning wages have risen by six per cent in the last 12 months.

But real-terms pay actually fell by 2.8 per cent between May and July across the country, when compared with last year.

This is based on pay, not including bonuses, and was one of the largest drops since records began in 2011.

The difference between nominal wages (not adjusted for inflation) and real growth rates (adjusted for inflation) is based on the rise in consumer price inflation, including housing costs and council tax (CPIH).

This is the speed at which the prices of the goods and services bought by households rise or fall.

For May to July 2022, CPIH was an average of 8.3 per cent.

The average monthly wage in the country rose by 6.5 per cent (to £2,111) in the last year to August.

This represents a real-term pay cut thanks to inflation.

Greg Thwaites, research director of think tank Resolution Foundation, said the only "chink of light" is the slight fall in inflation.

Inflation is still close to a 40-year high but eased slightly to 9.9 per cent in August from 10.1 per cent the month before.

The Trade Union Congress has urged the new Prime Minister Liz Truss to "get pay rising" ahead of a difficult winter.

TUC General Secretary Frances O'Grady said: "Every worker deserves a decent standard of living, and as the cost of living crisis intensifies, millions of families don’t know how they will make ends meet this winter."

Ms O'Grady urged the Prime Minister to increase pay packets, including increasing the minimum wage and giving public sector workers a pay rise.

The Treasury declined to comment due to the period of national mourning.

Unemployment has also continued to fall year-on-year in the three months to July.

In the South East, it was at 3.6 per cent, down from 4.2 per cent the year before.

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