24th July 2015
We may be in the midst of an economic recovery but pay rises are stuck at 2%.
Research by XpertHR, which analyses pay, shows the median rise in pay was just 2% in the three months to June – unchanged from the three months to April.
Analysis of 300 pay increase settlements, which accounts for around 2.5 million workers, found that half were for between 1.5% and 2% and one in six was for a pay rise of 3% or more.
In the public sector pay rises were worth 1.5%.
Sheila Attwood of XpertHR, said: ‘The going rate for pay awards across the economy is firmly stuck at 2%.
‘However, with the chancellor announcing that pay awards in the public sector will be restricted to 1% for a further four years from 2016/17, the divide between the value of increases in the public and private sectors is likely to prevail for many years to come.’
The unions hit out at the government after the release of the figures and warned that pay rises could slow further.
France O’Grady, TUC general secretary, said: ‘The chancellor’s economic plan hasn’t delivered the gains that will get us back to better pay increases.
‘We need a stronger recovery, with higher productivity and more decent jobs. But with signs of the economy slowing, major cuts to public services could further weaken growth and reduce the chance of pay rises improving.’