Most UK workers face the prospect of real declining incomes this year, the research suggests Private sector pay could rise by more this year than in 2010, but is still likely to trail inflation, research by Incomes Data Services has suggested.
The data suggests typical pay awards were running at 2.2% in November, up from the 2% rises that characterised most of the past year.
However, this is less than half the rate of retail price inflation.
The public sector in the UK faces pay freezes in most areas as a result of the government’s spending cuts.
While the number of explicit pay freezes has been dropping sharply, IDS expects public sector pay rises to fall from a typical 0.75 per cent in 2010.
In the private sector, pay rises may average three per cent this year, it predicted.
But as many analysts expect retail price inflation to remain above four per cent this year, the report suggests that another year of declining real incomes is in prospect for most UK workers, as the rate of pay increases fails to keep pace with inflation.
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