'Gap' in public and private pay

£5 notesWorkers in private firms received a median pay rise of 2.6% in recent months, while those in the public sector received no increase, revealing a "clear gap" between the two groups of employees, a new study showed.

An analysis of 57 settlements covering 1.8 million workers, by Incomes Data Services (IDS), revealed that the biggest increases were in manufacturing and production firms, at 3%.
Median settlements in the private sector rose slightly from 2.5% in the quarter to August, to 2.6% in the three months to September.

Some lower-paid public sector workers received small "protection" increases of £250, but these were in the minority, the report said.

Ken Mulkearn of IDS said: "The different experiences of the public and private sectors are shaping the difference between the level of pay settlements between the two sectors.

"While pay awards are ahead in the private sector, they are still some way behind inflation, even in manufacturing, where pay awards are higher in comparison to other sectors.

"Our own figures on pay settlement levels appear to reflect official statistics on average weekly earnings from the ONS, which also show a gap between the private and public sectors."

© 2011 Press Association
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