Private sector pay increases rise faster than public sector

Thursday, 27 October 2011 03:13

The gap between public and private sector pay increases is widening, according to figures from Incomes Data Services (IDS).

In its latest report on salaries across the country, the employment research organisation found the median settlement in the three months to the end of September was 2.6 per cent in the private sector.

This was compared to a pay freeze on average in deals within the public sector.

Both were well below the rate of consumer price index inflation of 5.2 per cent in September, as published by the Office for National Statistics (ONS).

Commenting on the figures, Ken Mulkearn, editor of IDS Pay Report, said the different experiences of the public and private sectors are driving this disparity in earnings increases.

He continued: "And 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," Mr Mulkearn added.

These figures come as the TUC calls on the Low Pay Commission to recommend raising the national minimum wage next year by more than the rate of inflation.

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