Pay rise misery ahead

UK workers will get one of the smallest average wage rises in Europe next year, a report forecasts.

Research by software firm ECA predicted about 2.8%. But inflation is forecast to grow 2.6%, meaning a real terms pay rise of 0.2. Only Hungary, Portugal and the Ukraine were lower, while the average real terms rise in Germany is 1.2%, and 1.3% in Italy. The Office for National Statistics will publish latest inflation figures today. A Chartered Institute for Personnel and Development report found workers not asking for rises because they think employers cannot afford it.