Private sector wages and total pay, including bonuses, surpassed inflation despite a surprise rise in the rate of UK unemployment.
Economists thought the unemployment rate would remain at the 4% level recorded last month but it has now gone up to 4.2% as the number of jobs vacancies fell by 66,000 to 1.02 million.
Wages have also risen again with private sector wage growth increasing to 8.2%, more than a key measure of inflation. It’s nearly two years since private sector wages rose above inflation – not since November 2021.
Pay, including bonuses, also reached 8.2%, the largest annual growth outside of the COVID pandemic as the NHS one-off bonus was paid.
Average weekly earnings, excluding bonuses, hit an annual growth rate of 7.8% during the three months to June, surpassing the highest level on record – the 7.3% confirmed in last month’s release.
The growth, however, was outpaced by the rate of price rises, meaning an effective pay cut for workers.
The key measure of inflation (the consumer price index) stood at 7.9% in the year to June. Not since October 2021 has wage growth outpaced inflation.
Public sector wages increased by 6.2%, the highest since September to November 2001 when public sector pay increased by 5.7%.
Some sectors saw even higher rises.
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Wages in finance and business services had the largest annual growth rate of 9.4%, followed by the manufacturing sector at 8.2%; it’s the highest annual growth rate for the sector since comparable records began in 2001.
On wages, Mr Bailey has said they are “not consistent currently with the 2% target, because we’re not at the 2% target at the moment”.
“It’s going to need to come down.”
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Biggest rise in wages on record
Latest figures will pile pressure on the Bank to continue its rate rising programme, making borrowing more expensive as a result and the market is now expecting interest rates to reach a high of 6%, up from pre-data release forecasts of 5.75%.
The ONS also said there were 160,000 working days lost due to strike action in June. More than half the days were due to industrial action in the health and social work sectors. Junior doctors staged walkouts in the month.
Responding to the data, Chancellor Jeremy Hunt said: “Thanks to the action we’ve taken in the jobs market, it’s great to see a record number of employees.
“Our ambitious reforms will make work pay and help even more people into work – including by expanding free childcare next year – helping to deliver on our priority to grow the economy.”
Foreign Secretary David Lammy confirmed the government had summoned Andrey Kelin in response.
Mr Kelin was seen arriving at the Foreign Office building in Whitehall today.
Image: Russian ambassador to the UK Andrey Kelin arrives at the Foreign Office building in Whitehall
Mr Lammy posted on X: “Putin’s strikes last night killed civilians, destroyed homes and damaged buildings, including the British Council and EU Delegation in Kyiv.
“We have summoned the Russian Ambassador. The killing and destruction must stop.”
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The British Council’s chief executive, Scott McDonald, said their guard for the building was injured but “stable”.
“At the insistence of my amazing colleagues, we will continue operations in Ukraine today wherever possible,” he said.
“Their resilience is awe-inspiring, and I am deeply thankful they are all safe.”
Earlier, Sir Keir Starmer said: “My thoughts are with all those affected by the senseless Russian strikes on Kyiv, which have damaged the British Council building.
“Putin is killing children and civilians, and sabotaging hopes of peace. This bloodshed must end.”
The British Council is an arms-length body from the government, and says its mission is to “support peace and prosperity by building connections, understanding and trust between people in the UK and countries worldwide”.
It facilitates schemes like working, living and learning abroad for British people.
Most of its funding comes from the fees it charges people for its services, but it does also get funding from the Foreign Commonwealth and Development Office (FCDO).
As well as the attack on the British Council building, Russia also targeted the EU delegation building in the Ukrainian capital overnight.
Ursula von der Leyen, the president of the European Commission, told reporters two missiles hit within 50 metres of the site in 20 seconds.
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Devastation in Kyiv after deadly Russian attack
And Kaja Kallas, the EU’s foreign policy chief, said the bloc was also summoning Russia’s ambassador following the strike.
“No diplomatic mission should ever be a target,” she said.
The attacks came as part of wider strikes on Kyiv, which destroyed homes and buildings and killed at least 15 people and injured 38, according to Ukrainian officials.
Russia has said it targeted military sites and air bases in its large overnight strike on Ukraine – and that it is still interested in negotiations to meet its aims.
“The special military operation continues,” he said, referring to Russia’s full-scale invasion of Ukraine, which it launched in February 2022.
“You see that strikes on Russian infrastructure facilities are also continuing, and often Russian civilian infrastructure is targeted by the Kyiv regime.”
He added: “At the same time, Russia will maintain its interest in continuing the negotiation process in order to achieve the goals we face through political and diplomatic means.”
Russia’s latest attack on Ukraine has been widely condemned, with Germany’s foreign minister Johann Wadephul saying there must be “consequences”.
“Last night we once again experienced in a terrible way how Russia attacked and bombed Kyiv, civilians died, children died, and the European Union delegation was also attacked,” he told reporters.
Mr Wadephul added that Germany wanted to show it was considering a further response and that any action would be taken jointly by the EU.
A Foreign Commonwealth and Development Office Spokesperson said: “The UK condemns in the strongest terms these outrageous attacks on Ukrainians and the damage done to the British Council and EU Delegation.
“Russia’s increasing attacks on Ukrainian civilians and cities, including Kyiv, are an escalation of the war and deeply irresponsible and are further sabotaging international peace efforts.
“We have made clear to the Russians that such actions will only harden UK and Western resolve to support Ukraine and bring an end to this unjustified war.
“Russia must stop this senseless killing and destruction immediately.”
A former Metropolitan Police volunteer has been found guilty of raping and sexually assaulting a child.
James Bubb, who now identifies as a woman named Gwyn Samuels, assaulted the victim multiple times when she was between the ages of 12 and 18.
Jurors were told Bubb, who identified as male at the time of the offences, would be referred to by their biological sex when allegations were being discussed throughout the trial.
Bubb met the victim on a video chat site in 2018, when he was around 21 and she was 12 years old. They then met in person for the first time at a Christian festival a few months later, the court was told.
The trial heard Bubb sexually assaulted the girl in public shortly before her 13th birthday, and that he was violent towards the girl when he raped her in her early teens.
Image: Pic: Thames Valley Police
In relation to the complainant, Bubb was on Thursday found guilty of one count of raping a child under 13, one count of sexual activity with a child, one count of assault of a child under 13 by penetration, and one count of assault by penetration.
He was found not guilty of one count of rape and one count of sexual activity with a child in relation to that complainant, and found guilty of one count of rape against a second person.
The defendant made no expression as the verdicts were read out, but sobbed with their head in their hands after the foreman finished speaking.
Bubb, who is now 27, started training with the Met in 2020.
The first victim said the defendant spoke “a lot about the powers he had” in his role as a special constable.
Prince Harry will return to the UK on the third anniversary of Queen Elizabeth II’s death next month for a charity awards ceremony.
The Duke of Sussex, 40, will support the WellChild children’s charity on September 8.
Prince Harry, who lives in California with his wife, Meghan Markle, 44, is a long-standing patron of the charity.
The 2025 awards mark three years to the day that Queen Elizabeth II, the duke’s grandmother, died at her home in Balmoral, Aberdeenshire.
‘Their stories remind us of the power of compassion’
Harry said in a statement: “I am always privileged to attend the WellChild Awards and meet the incredible children, families and professionals who inspire us all with their strength and spirit.
“For 20 years, these awards have highlighted the courage of young people living with complex health needs and shone a light on the devoted caregivers – family and professionals – who support them every step of the way.
“Their stories remind us of the power of compassion, connection and community.”
Image: Prince Harry lives in California with wife Meghan Markle. Pic: Yui Mok/Pool via REUTERS
Harry is set to make a speech, present an award to an “inspirational child” aged between four and six and meet and talk with seriously ill children and their families.
He has held the role of the charity’s patron for 17 years and has attended the awards 14 times before.
The charity describes itself as the national children’s charity “making it possible for children and young people with complex medical needs to thrive at home instead of hospital, wherever possible”.