British workers fear pay freezes

Date: 5th March 2010

The government is going to have "a hard time" convincing the country that the economy is improving, it has been suggested.

This is the opinion of consumer advice service uSwitch.com, which said the number of people experiencing or expecting pay freezes means low levels of confidence are likely to remain.

According to recent research carried out by the firm, more than 16 million British workers do not expect to receive a pay rise this year.

Of those who feel their salary will increase, more than nine million believe the rise will be below the Consumer Price Index inflation of 3.5 per cent.

Ann Robinson, director of consumer policy at uSwitch.com, said the results of the research will not be welcomed and could deal a blow to the country's economic recovery.

"This will do nothing to improve consumer confidence - a key factor if the economy is to claw its way out of recession," she said.

"Consumers have little scope for reducing their own budget deficits unless they work harder to strip down their essential bills to the bare minimum, rather than continue to plug the hole by borrowing."