Pay rises on the way

A new report claims that a third of employers in the UK are prepared to give their workers a higher pay rise next year, though it warned against a 'tough' climate on wages.

The survey, by analysts IDS, found that over half will give the same level of pay, with a third increasing their pay rises in 2012 and 13 percent believing that wage increases will be lower.

This year, it claims, pay freezes fell to the lowest level since the end of 2008. But most employees have experienced a real-terms reduction in their income because of high inflation and relatively low pay rises, the report found.

Trades Union Congress general secretary Brendan Barber said: 'While pay restraint could ease slightly in some industries, wages are likely to continue to trail rising prices and further squeeze living standards. Hard-pressed families are set for another tough year in 2012. The UK needs wage-led growth, with workers getting a fair share of its benefits, for a sustainable economic recovery.'

IDS studied 60 settlements, and revealed that in the three months to August there had been only one pay freeze in the private sector but three in the public sector.

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