Report reveals pay deals slowdown

Pay deals have slowed down in recent months, with many public sector workers seeing their wages frozen, according to a new report.

A new report has revealed that pay deals have been slowing down in recent months
A new report has revealed that pay deals have been slowing down in recent months

A study by pay analysts XpertHR showed the median increase in the three months to May was 2%, down from 2.5% in the first quarter of the year.

But settlements in the public sector were around 1%, with one in seven workers having their pay frozen.

Workers in manufacturing and production industries were paid a median rise of 2.5%, the analysis of almost 300 deals showed.

Two out of five agreements were worth the same or more than the 2.4% May RPI inflation figure.

XpertHR pay and benefits editor Sheila Attwood said: "Employers are continuing to take a cautious approach to pay reviews, with settlements of 2% in the private sector at the same level as seen over the latter part of 2013.

"Despite some positive news on the economy, pay award levels are expected to remain subdued for the time being."

TUC general secretary Frances O'Grady commented: "This slowdown in pay awards is yet further evidence of the cost of living crisis gripping Britain's workers.

"Only a few at the top seem to be sharing in the recovery. Those calling for interest rate rises will not only slow the recovery but cause further hardship for mortgage payers and all of those who have borrowed to keep their heads above water."