The horror! Researchers have predicted another year of woe for workers, with pay freezes or rises well below inflation.
The report, from pay experts Incomes Data Services, predicts that the public sector will be the biggest loser, with staff facing a two-year pay freeze, except those earning less than £21,000, who will receive a rise of £250 in each year.
Private sector workers will fare slightly better, with a predicted average pay rise of 3% this year, which is 1% up from last year.
This is way below the rising cost of living. The consumer prices index measure of inflation is currently 3.3% and the retail prices index is 4.7%. So whilst a private sector worker’s salary may go up, the cost of bills and other living costs will increase at a higher rate.
Ken Mulkearn, editor of the IDS Pay Report, confirmed this: He said: 'The majority of employees are unlikely to receive pay increases that match rises in the cost of living.'