Going rate for UK workers' pay rises 'firmly stuck' at 2%

The going rate for pay rises is "firmly stuck" at 2%, although public sector workers are receiving less, a new study has shown.

Research by pay analysts XpertHR showed median rises were 2% in the three months to June, unchanged from the quarter to April.

Details of more than 300 pay settlements, covering almost 2.5 million workers, found that half were worth between 1.5% and 2.5%, while one in six resulted in a rise of 3% or more.

Public sector increases were worth 1.5% in the latest period.

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."

TUC general secretary Frances O'Grady 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."