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Frequently Asked Questions
What is a real wage and how is it different from a nominal wage?
A nominal wage is the actual pound amount you are paid. A real wage adjusts that figure for inflation, showing the true purchasing power of your earnings. If your nominal salary rose 10% but inflation was 15%, your real wage actually fell by around 4.3%.
Which is better to use — CPI or RPI for inflation adjustment?
CPI (Consumer Prices Index) is the UK government's preferred measure and is used for benefits uprating. RPI (Retail Prices Index) is generally higher and includes housing costs such as mortgage interest. For wage comparisons, CPI is most commonly cited, but RPI gives a more complete picture of household costs.
Have UK real wages recovered since 2008?
UK real wages broadly stagnated between 2008 and 2014 due to the financial crisis, then grew modestly until the pandemic. The 2022–2023 inflation surge caused the biggest real wage squeeze in decades. By 2024–2026, real wages began recovering as inflation fell faster than wage growth slowed.
How do I use this real wage calculator?
Enter your salary in the base year you want to compare from, select the base year and the current year (default 2026), choose CPI or RPI, then click Calculate. The tool shows your salary's real value in today's money and a year-by-year breakdown.
What CPI data does this calculator use?
This calculator uses approximate annual UK CPI figures from 2010 to 2026 based on ONS published data. The 2025 and 2026 figures use the latest available ONS estimates. For precise figures, always refer directly to the ONS website.