Jamie O’Halloran, Economist at PBE, said:

“Inflation continues at a 40-year high, inflicting the sharpest fall in pay for more than two decades. We project real pay last month was 5% lower than at the start of 2021.

“This stifling pay squeeze is fuelling spiralling demand for charities’ services. Pressure on the sector is exacerbated by challenges recruiting and retaining staff, made even harder by pay falling ever further behind businesses.

“Recent Bank of England data shows wages rising in May 2022 by only 3.8% among charities, compared with 5.6% for businesses.

“While the government's attention is focused on the battle to be the next PM, charities and the people they support face little respite from the mounting pressure. The next government should be prepared to work closely with the sector to weather the cost of living crisis for as long as it lasts.”

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