Fewer companies forecast pay freezesFewer UK companies are expecting to implement more pay freezes this year compared with 2009, according to an expert.

Duncan Brown, the Institute for Employment Studies’ director of HR business development, indicated that this forecast may be a result of both higher confidence bringing a recovery in some sectors and the fear of losing the most capable staff to rival firms.

He suggested that flexible working patterns, reduced hours and pay freezes had helped private sector unemployment stay lower than feared and pointed out that there are signs of improvement.

However, the expert predicted that the worst may yet be to come in terms of public sector pay freezes, with the new government making a cut in spending a priority.

On Monday (May 24th), the chief secretary to the Treasury David Laws announced £6.2 billion of savings, which could included capping salary progression across taxpayers funded services.

By Hayley Edwards