New data reveals that pay has risen faster than inflation for the first time in two years between June and August of this year.

HR and financial wellbeing expert Chieu Cao, CEO of Mintago, said: “The pace at which average wages are rising is certainly to be welcomed. However, we cannot assume that just because average wage growth has finally overtaken the rate of inflation, people’s finances will be back in a healthy position.

“True financial wellbeing extends beyond paychecks, and there are deeper issues at play – such as a lack of financial literacy, struggles managing debt and being unsure how to plan for the future. Employers should absolutely look to support staff with better pay where possible, but improving employees’ all-round financial wellbeing must be addressed as a keen priority.

“Businesses need to commit to providing more holistic support systems that not only address employees’ short-term pressures, but also nurture their long-term financial security. In doing so, they can empower their staff to navigate financial challenges with confidence, ensuring that their staff remain productive and mentally well in the months and years ahead.”