Pay in the private sector is likely to rise faster than in the public sector, a new report has said.
The Institute for Fiscal Studies has said that the pay gap between the sectors had returned to pre-crisis levels and that the difference was likely to increase over the next four years.

Frances O'Grady, general secretary of the TUC, said: "The pay squeeze looks set to go on and on, which will not only make public sector workers suffer further years of cuts in their living standards, but also hit the quality of the services that bind our society together."

However, Jonathan Cribb, the author of the report, said: "Over the last 15 years, changes in the gap between total remuneration in the public and private sectors has been driven more by the changing value of pensions rather than headline pay. Pay and pensions need to be considered together.”