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Household budgets hit by pay freeze

Wed 3rd August 2011

Just one in four workers in the UK has received a pay rise so far in 2011 according to figures published by the Chartered Institute for Personnel and Development (CIPD).

With most pay increases being awarded between January and May it is likely that most employees will not receive a pay rise this year. As many as one in twenty workers have had their pay cut since January.

Worst off are public sector workers with more than 75% having their pay frozen compared to 50% in the private sector. The area hardest hit has been north-west England. Workers in the manufacturing and finance sectors are most likely to have received a pay increase.

Public policy adviser at the CIPD, Charles Cotton said 'We will see some increase in the number of private sector workers receiving a pay award in the second half of 2011, especially in the retail, catering and hotel sectors, as the increase to the national minimum wage comes into effect in October.'

'However given that the busiest time of year for pay awards in the private sector is between January and May, most of these workers who have not received a pay rise so far will now probably not get one at all.' 

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