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Fall in pay freeze settlements

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Fewer firms are imposing pay freezes, a new study has revealed.

It may be a further sign that business conditions are beginning to improve.

According to research organisation IDS, there was a significant decline in the number of businesses that kept employees’ earnings on hold during April.

Just 18 per cent of settlements struck between February and April in the private sector were freezes. This compares with the 34 per cent recorded in the three months to March.

In July last year, almost a half of firms were keeping wages at their then current levels.

The IDS report said: “This is the lowest proportion of pay freezes since January 2009, when freezes first emerged as a key trend in pay setting during the economic downturn.”