16m expect no pay increase in 2010

Wednesday, 03 March 2010 10:33

By myfinances.co.uk staff

Some 16 million people, or 57% of the UK workforce, do not expect their salary to increase at all this year.

Research by uSwitch.com found that a further nine million workers anticipate pay rises below the CPI measure of inflation, which currently stands at 3.5 per cent.

Nurses, civil servants and teachers expect to get the smallest increases at 1.4 per cent, 1.6 per cent and 1.8 per cent respectively. At the other end of the scale, bankers and lawyers forecast pay hikes of 2.7 per cent and 2.9 per cent.

The rising cost of living means 31 per cent of consumers believe they will be worse off this year compared to 2009.

Around 11% of Britons, or 5.4 million adults, are currently spending more than they earn - up 12% since 2008.

Meanwhile, 48% use their overdrafts to cover outgoings and another 26% break even each month.

According to the Office for National Statistics, average hourly earnings for full-time workers stood at £12.97 for men and £11.39 for women last year.

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