Inflation: What it means for your employees

This week, the Office for National Statistics (ONS) released figures showing the UK’s annual inflation rate for September 2025 is 3.8%. 

For many employees, that means their everyday costs are rising, particularly for essentials like food, energy, and housing.

While recent wage growth has outpaced headline inflation - 4.8% for regular pay in the three months to July - some costs, such as food (5.1%) and housing (5.3%), are rising faster than wages.

This means that even employees receiving pay increases may still feel the squeeze.

We know this can be stressful for employees, and it’s an important moment for employers to consider how best to support their teams.

Even with nominal pay rises, higher costs in essentials mean some employees may feel a pinch on their household budgets.

Rising food, energy, and housing costs are taking up a bigger portion of income, so real-life financial pressures can still be significant despite overall wage growth.

Today’s inflation figures highlight the importance of taking proactive steps to support your workforce.

Employers could consider:

Salary reviews and adjustments

Ensuring pay keeps pace with rising living costs helps employees feel supported and valued.

Enhanced benefits

Practical support such as commuter subsidies, childcare help, or meal allowances can ease pressure on household budgets.

Financial wellbeing programmes

Using tools like moneyappi, employers can provide employees with tailored budgeting support and personalised financial guidance. This helps staff plan for everyday expenses, manage debt, and reduce money-related stress.

Flexible working arrangements

Offering flexible hours or remote working options can lower commuting costs and improve work-life balance.

With the latest inflation figures just released, employers have a timely opportunity to review pay, benefits, and financial support programmes.

Taking action now helps prevent financial stress for employees, boosts morale, and supports retention. By being proactive, you can ensure your team feels supported, motivated, and ready to focus on what matters most.