Bank of England economist branded 'tone-deaf' for telling people to 'accept' being poorer

Financial experts have branded a top Bank of England economist's comments "tone-deaf" after he warned poorer Britons to accept they are "worse off". Huw Pill told the US-based Columbia Law School podcast Beyond Unprecedented that people need to accept that "we're all worse off and we all have to take our share". But financial experts have hit back at the banker, who reportedly earns a six-figure annual salary, slamming his "audacity". Speaking to Express.co.uk, Pete Mugleston, an MD and money expert at www.onlinemoneyadvisor.co.uk, said he was shocked to read the banker's comments.

He said: "During a time in which mortgage rates are increasing, food inflation is decimating incomes, and the cost-of-living crisis is in full swing, a top economist at The Bank of England - Huw Pill - has the audacity to claim that people in the UK are simply reluctant to accept that we are all worse off and should ‘take our share’.

"The tone-deaf nature of this comment is quite shocking - to condense the financial crisis the UK is experiencing down to a case of an outright reluctance to accept the situation - apportioning blame to hard-working individuals across the country."

Mr Mugleston added that the banker is much better off than most Britons and wouldn't shoulder the same "devastating impact" of the UK's financial pressures compared to those on a lower income.

He said: "Managing rising costs is entirely relative - for example, food inflation can be the difference between eating and starving for low-income families, whereas people in Huw’s position - currently on an annual salary of £180,000 having already taken home £88,000 for the first five months and 24 days working at The Bank of England - food inflation won’t quite have the same devastating impact."

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During his podcast appearance, Mr Pill also compared the need to "share" costs to a "pass-the-parcel game".

He claimed the "game" is "generating inflation", and added that this "part of inflation can persist".

Mr Mugleston disputed the "inflammatory" analogy and said that the game "Piggy in the Middle" is more appropriate.

He said: "The unsavoury comparison between the state of the economy and a ‘game of pass the parcel’ - with people passing on higher costs through asking for wage increases and businesses charging more - is more inflammatory rhetoric."

"A closer analogy would be a game of piggy in the middle, placing the everyday, hardworking Britons slap-bang in the middle."

The expert isn't the only analyst who is unimpressed by Mr Pill's comments, with Andy Barr, a retail expert and co-founder of www.alertr.co.uk, similarly critical of the economist.

He said that while "someone" must take responsibility for the rapid inflation, it is "unfair to put the blame on hard-working Britons seeking a pay rise".

Mr Barr highlighted the mix of factors leading people to seek higher wages.

He said: "With groceries, household bills and fuel prices so much higher than they were previously, I think it’s easy to understand why workers are seeking a higher salary to keep up with this.

"It’s clear that low-income households need higher wages in order to simply afford the essentials; it’s not a matter of wanting to purchase luxury items, wages need to go up simply so that employees can afford their food shop, travel costs and mortgage payments."

The retail expert added that Mr Pill's comments appeared "quite insensitive" as regular Britons face an economic crisis.

He continued: "While it’s important to discuss potential solutions to the current cost-of-living crisis, Mr Pill’s comments come across as quite insensitive, particularly towards the many families currently living in poverty in the UK – a number that is continually increasing right now.

"Our latest price-tracking data shows that, since 2021, own-brand wholemeal bread has risen by, on average, 55 percent across four of the biggest supermarkets in the UK.

"A can of Heinz baked beans has risen by 64 percent and one kilogram of own-brand fusilli has risen by a whopping 73 percent."

"This is the reality that families are facing and this is why higher wages for those struggling is necessary."

Mr Barr advised people struggling with the rising costs to keep asking for all-important pay raises.

He said: "So, to Britons who find themselves struggling and wondering what they can do to ease the pressure on their finances, I would say to keep speaking up if your current salary is not high enough to keep up with inflation.

"In the meantime, there are a number of things you can try to help keep your expenses down – for your food shop, I’d recommend switching to own-brand products, keeping an eye out for discounts and signing up to the loyalty scheme at your local supermarket."