Private pay rises set to be 2%

Basic pay rises for workers in private firms are set to be around 2% in the coming year, according to a new study.

Median pay increases will be around 2.5% when performance-based elements are added, found a survey of 127 firms employing 86,000 workers.

Around one in 10 of those polled by analysts XpertHR said they would freeze pay in the next year.

The most common basic pay rise is forecast to be 2%, with the rate of inflation having the biggest influence on wage increases.

Sheila Attwood of XpertHR said: "Employees look set to experience yet another year of anaemic pay rises. With 2% to 2.5% likely to be the going rate for the foreseeable future, inflation continues to outpace wage increases, with most employees seeing their pay fall behind in real terms."

TUC general secretary Frances O'Grady said: "Consumer spending is crucial to getting our economy moving again, but it's hard to see this happening if wage packets keep on shrinking throughout 2013.

"The Chancellor should be encouraging employers who can afford to pay staff more to do so. Instead, all we're seeing are more real pay cuts for teachers, care workers and police officers."