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Public sector pay rises slip back

The level of pay rises has fallen back, with increasing numbers of public sector workers "caught" by the Government's 1% wage policy, according to a new report.

A study of more than 170 settlements in the three months to April found the median increase was 2%, a fall of 0.5% compared with the quarter to March.

Pay analysts XpertHR said there was a "clear difference" between pay rises in the public and private sectors.

Workers in private firms had a median award of 2.4%, whereas those in the NHS and Prison Service were covered by the Government's 1% pay policy.

Sheila Attwood, of XpertHR, said: "Following an encouraging start to the year, the pace of pay bargaining seems to have eased. Pay awards in the private sector remain low, at just 2.4%, and there is little to suggest a dramatic increase in settlement levels is in the offing."

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