UK workers to get a pay boost this year

UK professionals are in line for an above-inflation salary increase this year, with average pay expected to climb by 4pc, white-collar recruitment firm Robert Walters has said.

Workers in the north are due to get the biggest boost, as rising rent prices in the London and the south east force companies to relocate back-office functions to more affordable cities.

In its annual report of the jobs market, Robert Walters said that the number of vacancies in IT in the Midlands this year will outnumber the pool of skilled candidates available. Companies will therefore have to increase pay and benefits to attract top talent. Top IT directors could see their pay rise by 39pc this year, the report added.

Manchester and Birmingham have seen a rise in demand for IT professionals and accountants in the last year, pushing up the average pay by 4.5pc and 4.6pc respectively.

The average pay for professionals in the Midlands is now £50,400, and the average salary in Manchester is £45,700.

“Businesses are positioning to recruit, train and rebuild their workforces, in turn leading to rising salaries,” said Colin Loth of Robert Walters. “The strongest candidates are in great demand across the board, with hiring managers focusing on a mix of graduates and experienced, high-potential individuals who can help deliver long-term growth.”

It follows other data which suggests Birmingham is luring workers away from the capital. Birmingham is the top destination for London dwellers, according to the Office for National Statistics. The city attracted 5,480 Londoners in the year to June 2013.

A recent report said that Birmingham will overtake London this year as the UK’s most attractive city for property investment this year. A shortage of available assets and high price tags on office buildings and retail outlets in cities such as London will drive investors to look at Birmingham, the report from PwC and the Urban Land Institute said.

Pay across the South East region is expected to rise in line with the 4pc UK average, as companies have access to a wider range of skilled workers.