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I think we broadly agree. Not being given a pay increase, or one that is less than inflation, can undoubtedly lead to having less spending power, which can definitely have real world consequences. I do object to the phrase 'real terms pay cut' though because, firstly it isn't actually true...

We all know the meaning, I'm just pointing out it is bollocks.

Not really. It is as real as saying that a pay cut at the same time as there is a greater drop in prices is a real terms pay increase.

Now I'm really not sure what you are talking about, and as it has been a long time since I've studied economics I'm definitely not up on the current lingo. But to put it simply: * If I have a pay rise and prices stay the same, I have had a pay rise and more spending power. I have not had a pay...

Erm, because the "real terms" thing isn't what actually happens. An increase in pay is a increase in pay, it isn't ever actually a pay cut.

I'm not arguing against increasing a persons income at all, and having worked in the annuity sector many years ago I certainly don't have a problem with RPI and CPI being used in pensions as that is what actuaries are employed to work out how to cost! The only argument I am making is that not...

You haven't misunderstood, and your example is correct. I'll admit I have a problem with the expression "real terms" as it is somewhat loaded, in my opinion, to suggest something is simple that doesn't correspond to the rather more complicated reality. Not all prices go up, not all prices go...

I doesn't show they've had a pay cut at all, what it purports to show is that prices are increasing faster than wages. Everyone would like their wages to increase higher than prices, or at the very least in line with them.

I agree entirely with your sentiment as it happens. We absolutely should be investing in quality in our education. I was disappointed that that graph doesn't really show anything useful unfortunately, and I suspect it makes the mistake I mentioned earlier of conflating price inflation with...

It is a mistake to conflate price inflation with wage inflation, as they do not go hand in hand. Nobody refuses a pay rise when prices aren't going up do they? I'm not taking a side one way or another on whether the teachers should be striking btw, my opinion is that pay should be set at a...