British workers tipped not to expect significant pay rises next year

British workers have been warned not to expect significant pay rises until 2015 at the earliest.

Mark Chote, who is the head of the Office for Budget Responsibility, has predicted that average pay will only rise a smidgen above inflation next year.

In a speech to the Treasury Select Committee, he tipped wages to rise by an average of 2.6 per cent in 2014, with inflation dropping slightly to 2.3 per cent.

“Real earnings are flat next year and then there is clear growth in 2015,” he concluded.

This might be scant consolation to the millions of workers who have effectively taken pay cuts this year, as inflation dramatically outpaced wage rises. According to dailymail.co.uk, inflation was at 2.5 per cent in 2013, whilst wage rises equalled just 1.5 per cent.

The unexpectedly quick recovery of the British economy might have led some workers to have hoped for more impressive wage rises, but this looks far from likely now.

Commenting on these predictions, Bank of England governor Mark Carney said that “it seems reasonable to expect the hopes and dreams of the holiday season to be fulfilled”.

Nevertheless, scotsman.com reports that he was has quashed the rumours that interest rates could be likely to go up in 2014. In August, the Bank pledged it would not even entertain the thought of boosting interest rates until unemployment dropped below seven per cent.