1. What is Percentage Increase?

Percentage increase measures how much a value has grown relative to its original amount, expressed as a percentage. It's commonly used in UK government contexts to calculate pay rises, benefit increases, budget changes, and inflation adjustments.

2. How Does the Calculator Work?

The calculator uses the standard percentage increase formula:

Where:

• New Value — The current or proposed amount (in GBP)
• Old Value — The original or previous amount (in GBP)

Explanation: The formula calculates the difference between values, divides by the original amount to get a proportion, then converts to a percentage by multiplying by 100.

3. Importance for UK Government Context

Details: This calculation is essential for determining appropriate adjustments to public sector pay, benefits, pensions, and budgets. It helps ensure fair and transparent increases that reflect economic conditions.

4. Using the Calculator

Tips: Enter both values in GBP (£). The old value must be greater than zero. Results show the percentage change, with positive values indicating an increase and negative values a decrease.

5. Frequently Asked Questions (FAQ)

Q1: How is this different from percentage points?
A: Percentage increase shows relative change from an original value, while percentage points measure absolute difference between two percentages.

Q2: What's considered a typical annual pay increase?
A: In UK public sector, annual increases typically range 1-5%, but vary by economic conditions and pay review body recommendations.

Q3: How does this relate to inflation?
A: Real terms increases account for inflation. A 2% pay rise with 3% inflation actually represents a 1% decrease in purchasing power.

Q4: Can I use this for benefit calculations?
A: Yes, the same formula applies to benefit increases, but always check current DWP guidelines for official calculations.

Q5: Why does the calculator require GBP values?
A: This version is tailored for UK government context where amounts are typically in pounds sterling. The same formula works with any currency.