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  1. ITV Report

Workers 'pessimistic' about pay rise chances in 2018

The gloomy outlook is shared by the public, with more than half expecting their pay to remain the same or fall Credit: PA

Britain's workers are facing the prospect of another year without a pay rise, a leading economic think tank has warned.

The Resolution Foundation (RF) is predicting zero growth in real wages over the course of 2018 as a whole.

While the pay squeeze which saw real wages fall back in 2017 is set to come to an end, the think tank said that a "noticeable" year-on-year rise in real pay was not now forecast until December 2018.

Real pay remains £15-a-week below its peak before the global financial crash of 2008 and is not expected to recover to its pre-crisis levels until 2025.

The RF said its gloomy outlook was shared by the public with more than half expecting their pay to remain the same or fall over the next 12 months if they stay in the same job, according to resent data from the Bank of England.

Just one in seven said they were expecting a pay increase, while around a quarter of households expect their financial situation will worsen over the course of the year, roughly the same proportion as those who believe it will get better.

The report does highlight some grounds for optimism with the lowest paid workers set for a 4.3% pay rise in April as the national living wage reaches £7.83.

It also notes a possible up-tick in productivity growth in the three months to October, the strongest it has been since the end of 2005, potentially heralding pay rises in the future.

Torsten Bell, the Resolution Foundation's director, said: "2017 was a tough year for living standards as the pay squeeze returned. The good news is that things will get better next year.

"The bad news is we may only go from backwards to standing still, with prospects for a meaningful pay recovery still out of sight."