28/07/2011 05:29 BST | Updated 26/09/2011 06:12 BST

Pay Rise Gap Widens Between Public And Private Sector Workers

PRESS ASSOCIATION -- The gap between pay rises for workers in the public sector and private firms has widened in recent months, new research has revealed.

Median settlements in companies increased by 0.4% to 2.9% in the the quarter to June, but remained at zero in the public sector, said Incomes Data Services (IDS).

Higher pay awards were reported in the manufacturing sector but more public and not-for-profit organisations are freezing wages.

Ken Mulkearn, of IDS, said: "Employees' experiences in respect of annual pay awards are very different in the private and public sectors.

"The median level of awards has risen in the private sector, though it is still some way behind inflation.

"Meanwhile, in the public sector the policy of freezing basic pay for most staff means that, for many, the squeeze on incomes is even greater."

TUC general secretary Brendan Barber said: "Whilst the small recovery in pay settlements is encouraging, wages are still trailing rising prices and this looks likely to continue for some time.

"The pain in the public sector is considerable, with pay freezes now coming alongside mounting job losses.

"This harsh income squeeze can only be eased by strong economic growth. The Government needs to come up with a coherent plan to secure it as its austerity measures are clearly not working."